Malta International Airport (MIA) on Wednesday published the financial results for 2020, reporting a drop of €68 million (-67.9 per cent) in total revenue generated by the Group during the year under review compared to 2019.
MIA’s passenger traffic for 2020 suffered a staggering drop of 76.1 per cent as a result of the COVID-19 pandemic and travel restrictions, leading to the worst traffic result and the first loss-making year for the Group since the airport’s privatisation in 2002.
MIA’s financial statements show that while revenue from the Company’s aviation segment registered a drop of 74.8 per cent, revenue from the non-aviation segment, which includes rents, parking, and VIP products, dropped 51.4 per cent.
In contrast with 2019, when the Group had closed the year with profit after tax amounting to €33.9 million, Malta International Airport plc ended 2020 with a net loss of €4.3 million at Group level.
“An excellent track record in the years leading up to 2020 furnished us with resilience to face last year’s unprecedented challenges.
“However, significant uncertainty and low consumer confidence continue to dominate the aviation environment, necessitating a continued cautious approach to cash management to bolster the Company’s ability to withstand further shocks and safeguard the long-term interests of all stakeholders, whilst remaining in a position to swing into action as soon as air travel shows signs of recovery,” said Malta International Airport CEO Alan Borg.
The Group’s financial statements also show that, through a strict cost-cutting and liquidity preservation programme, MIA had succeeded in lowering its total expenditure to €26.6 million (-28.3 per cent) during the reporting period. Group staff costs registered a decrease of €2.2 million (-20.2 per cent), which resulted from the COVID Wage Supplement Scheme and temporary salary reductions between April and July 2020, while operating expenditure decreased by €8.3 million (-31.8 per cent).
Having considered the Group's performance for 2020 and the limited visibility of the way ahead, the Board of Directors are not recommending a dividend payment for the financial year 2020.