DENMARK. Copenhagen Airports today reported half-year results to 30 June, with concession revenue from the Shopping Centre business (retail, F&B and services) falling by -50.9% year-on-year to DKK213.7 million (US$34 million).
The company commented: “Due to the crisis, a majority of concessionaires in the restaurant and convenience segment, banks and speciality shops were closed late in the first quarter and all through the second quarter of 2020.”
Revenue from car parking fell by -55.6%, mainly due to a decrease in locally departing passengers.
Non-aeronautical revenue overall amounted to DKK503.6 million (US$80 million), which was -45.6% down on the first half of 2019.
Group revenue reached DKK934.8 million (US$148 million), a -55.5% fall year-on-year. EBITDA of DKK257.5 million (US$41 million) was down by -77.3% while pre-tax profits fell by DKK844.9 million to a loss of DKK227.9 million (US$36 million).
The number of passengers travelling through Copenhagen Airport in the first half was 5 million, a decrease of -65.2% compared to the same period in 2019.
The company said it expects a sharp fall in revenue in full-year 2020 and a loss after tax of DKK450-750 million, building in the offset in contribution from government support packages. Copenhagen Airport is also considering cutting 650 full-time positions from the company’s current 2,600.
Commenting on the wider impact of the crisis, the airport company said: “Across the airport’s entire eco system, from airlines to ground handlers and the many shops and restaurants, the coronavirus pandemic has created a highly challenging and, for some companies, an existential crisis. Many of the businesses operating at the airport have had to let skilled employees go, and CPH has not been able to give passengers the travel experience they have come to expect.”
On recovery, it said: “Activity at the airport has increased over the summer period, but it remains at a very low level. The slight increase in business activity will not change the fact that CPH will likely incur a second-half loss exceeding the first-half deficit, nor that CPH is funding its ongoing operations by way of a loan facility agreement entered into with a club of banks earlier this year.
“Given the extreme uncertainty as to when, and to what extent, air traffic will return to normal, CPH is currently managing operations on a much shorter timeframe than usual. Most likely, it will be a while before CPH recovers to pre-coronavirus levels.”
