Riga, May 21, LETA. Last year, SJSC Riga International Airport suffered a loss of 15.85 million euros as opposed to a profit in 2019, while the company’s turnover decreased by 54% to 29.8 million euros, according to the company’s audited annual report for 2020.
Last year, the airport served 2.01 million passengers, which is 5.8 million or 74% less than originally planned. The number of serviced flights decreased to 35,600, which is 59% less than a year earlier.
The airport’s revenue from aviation services last year amounted to 15 million euros, which is a 63% decrease compared to what was initially planned in the budget. Revenue from non-aviation services fell to 14.7 million euros last year, down 39% from a year earlier.
According to the airport, the company’s losses are lower than forecast at the beginning of the crisis last spring. Despite the high share of fixed costs, which cannot be reduced without a significant impact on operations, last year the airport was able to reduce its costs by 30% or 14.6 million euros.
Laila Odiņa, the Chairman of the Board of Riga Airport, explained that the company started last year with a record of the number of passengers served with the historically best economic performance indicators and forecasts.
“Despite the impact of the crisis, the airport has managed to maintain its leading position among airports in other Baltic countries, while significantly reducing the company’s costs. Last year, business park development, as well as continued the most important infrastructure development projects, “said Odina.
She revealed that according to initial forecasts, the difficult situation in the aviation sector will continue in 2021, so the airport has developed a crisis management plan with action models for various future scenarios, which will allow to respond quickly to the ever-changing situation.
In 2020, Riga Airport maintained its position as the largest airport in the Baltic States, providing itself with a 43% market share of the total number of passengers served in the Baltic States (Lithuanian airports – 39%, Tallinn – 18%), 40% of the total number of flights (Lithuanian airports – 34%, Tallinn – 26%) and 44% of the air cargo handled (Lithuanian airports – 38%, Tallinn – 18%).
Last year, several investment projects were implemented at Riga Airport, including the launch of a new specialized cargo platform, which is the center around which the airport’s cargo city or RIX Cargo City will be developed in the future. The 2nd apron, which is intended for servicing business aircraft, has also been expanded, a helipad has been built and the pavement on part of the runway and taxiways has been renewed. In turn, the new high-speed taxiway and platform axle lights will allow the airport to become more environmentally friendly by reducing carbon emissions. The total amount of investments last year amounted to 13.9 million euros.
It has already been reported that in March 2021, the European Commission approved Latvia’s plans to allocate up to 39.7 million euros for the recapitalization of Riga Airport. Of the total amount, 35.2 million euros will be allocated to increase the share capital of Riga Airport, and 4.5 million euros – to leave dividends for the profit of 2019 at the company’s disposal.
The share capital of Riga Airport is currently 28.61 million euros, thus it is planned to increase the share capital of the company to 63.81 million euros.
It is also reported that in 2019, Riga Airport had a turnover of 64.987 million and a profit of 22.141 million euros.
Riga International Airport is the largest air traffic hub in the Baltic States.
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