Covid-19 has had a severe economic impact on Zurich airport, with a near-total collapse in revenues at times, according to first half results.
Switzerland’s largest international airport posted a loss of CHF27.5 million ($30.3 million) for the first six months of 2020. This compares to a profit of CHF143.4 million in the first half of 2019.
In the first six months of 2020, 5.3 million passengers used Zurich airport, a decrease of 64.3% compared with the same period in 2019. The number of flight movements went down by 55.5% between January and June 2020.
“The coronavirus crisis has had a severe economic impact on the entire aviation industry and on Flughafen Zürich AG [the airport’s operator]. At times, there was a near-total collapse in revenues, which is reflected in first-half business performance,” company CEO Stephan Widrig said in a statement on FridayExternal link.
However, the airport did manage earnings before interest, tax, depreciation and amortisation (EBITDA) of CHF 104.9 million, even if this was a third of the amount in 2019.
Crisis measures
During the crisis, the airport operator introduced short-time working and took various measures to secure liquidity. There is expected to be further substantial cuts in capital expenditure and costs over the coming months and years, the statement continued.
The airport stayed open during the spring – the height of the pandemic when Switzerland went into nationwide lockdown and air traffic was almost at a standstill – to accommodate air freight, repatriation and ambulance flights, alongside a few passenger flights.
There are signs of a slow recovery since the gradual reopening of borders in June, the statement continued, with the expectation that the travel sector would start its recovery in Europe. But it is likely to be several years before the intercontinental market fully recovers, it added.
“We are confident that international air traffic will recover over the long term,” said Widrig.
Outlook
“It is difficult to issue a reliable forecast for the current financial year, owing to considerable uncertainty over the further course of the coronavirus crisis,” the statement added.
A loss is anticipated for the current financial year.
More
More
International Geneva
How flying in and out of Switzerland will look post-Covid
This content was published on
Face masks and more patience will be essential for people taking flights after the coronavirus pandemic.
Swiss army recruits remain in hospital after gruelling test exercise
This content was published on
Four potential recruits for the elite Swiss grenadier unit were hospitalised last week after taking part in a gruelling exercise in hot weather. Three remain in hospital with one placed temporarily in an artificial coma.
University of Basel to mark 125th anniversary of Nietzsche’s death
This content was published on
This month the University of Basel is celebrating the German philosopher Friedrich Nietzsche, who was a professor there from 1869 to 1879. August 25th marks the 125th anniversary of his death.
Trump tariffs: Swiss brands struggle to adapt to 39% tariff
This content was published on
Swiss brands like Victorinox, the manufacturer of the iconic pocket knife, are struggling to adapt to the 39% tariff imposed by the United States on imports of Swiss goods.
Fish and aquatic plants are under ‘severe pressure’ in Swiss rivers and lakes
This content was published on
Fish, aquatic plants and other animals in Swiss rivers, lakes and streams remain under 'severe pressure', according to the Federal Office for the Environment.
Swatch withdraws ‘slanted eyes’ ad after China uproar
This content was published on
The Swiss watch manufacturer Swatch has apologised and withdrawn an advertising campaign worldwide following accusations of racism in China. The ad features a model pulling the corners of his eyes.
Police identify bodies of three climbers who died in Swiss Alps
This content was published on
Police have formally identified the bodies of three climbers who died in the Upper Valais region in early August: they are from Germany, France and Austria.
Bern exhibition reunites Kirchner paintings after 92 years
This content was published on
The painting Sonntag der Bergbauern (Alpsonntag) [Sunday of the Mountain Farmers (Alp Sunday) by Ernst Ludwig Kirchner (1880-1938) is being transferred from Berlin to Bern to feature in an upcoming exhibition at Kunstmuseum Bern.
Voters approve extension of Engadine Airport in Switzerland
This content was published on
Residents in the Upper Engadine region gave the greenlight on Sunday to the expansion of the regional airport at Samedan, one of Europe’s highest airports (1,707 metres) that serves the nearby resorts of St Moritz and Davos.
Private equity group Advent to buy U-Blox for $1.3 billion
This content was published on
Private equity group Advent International has agreed to take over Switzerland's U-Blox Holding in a cash offer worth CHF1.05 billion ($1.30 billion).
Trump made direct financial demands during call with Swiss president
This content was published on
During the telephone call between Karin Keller-Sutter and Donald Trump on July 31, Trump demanded direct payments from Switzerland, according to an investigation by SonntagsBlick.
Canton Zurich collects ‘risk land’ passenger data for other cantons
This content was published on
Canton Zurich sends passenger data on people flying into Zurich airport from Switzerland’s coronavirus “risk list” countries to several other cantons.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.