COVID-19 wipes off nearly €70 million in revenue for Malta International Airport

MIA posts first-ever loss of €4.3 million as COVID-19 makes 2020 worst traffic result since the airport’s privatisation in 2002

Malta International Airport’s passenger traffic for 2020 suffered a staggering drop of 76.1% 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.

While revenue from the company’s aviation segment registered a drop of 74.8%, revenue from the non-aviation segment, which includes rents, parking, and VIP products, dropped 51.4%.

In contrast with 2019, when MIA closed the year with profit after tax amounting to €33.9 million, 2020 ended 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%) during the reporting period. Group staff costs registered a decrease of €2.2 million (-20.2%), 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%).