Company Announcement
A billion-kroner profit turned into a loss in 2020
For
2020 was also a year in which employees, management and owners, in partnership with CPH’s other stakeholders, stood together to weather the storm. Amongst others, CPH’s lenders have provided credit facilities of
During the year, a united CPH was geared up to act quickly in an unpredictable reality of ever-changing travel and testing guidelines.
In 2020, CPH took significant actions with positive effect on performance including substantial cost reductions of
As socially critical infrastructure and Denmark’s gateway to the world, CPH could not simply shut down and wait for better times. CPH had to stay open for the very limited passenger traffic that remained, and not least for important air cargo. This has meant that expenditure has far exceeded revenue.
Collaboration to save jobs
Excellent collaboration with the authorities and the government brought flexibility to the salary compensation scheme, allowing CPH’s employees to be put on rotation or furloughed.
Overall, CPH received
As a consequence of the very low activity level at the airport, CPH and the unions worked together on, among other things, upskilling and division of labour. The joint effort and excellent collaboration meant that CPH was able to avoid cutting a further 300 jobs.
It is estimated that 10,000 jobs have been lost in the Danish aviation sector – the majority in the 1,000 or so companies in and around
The five must-win battles of the crisis
The coronavirus pandemic has put many of the activities of the Architects of the
- To ensure a safe, comfortable and positive travel experience for passengers
- To safeguard teamwork and motivation in the organisation
- To simplify working processes and reduce bureaucracy for the future
- To focus on lower expenditure and minimise costs
- To protect and develop our revenue streams
Fear of becoming infected while travelling, complicated and differing coronavirus rules in every country, new travel restrictions every Thursday and the prospect of a long spell of quarantine – all this kept 75% of passengers at home in 2020. With the “Let’s travel with care” initiative, in the spring and summer CPH’s employees implemented everything from face masks, hand sanitiser, plexiglass, extra cleaning and distance markers in the terminals to extra security and service personnel guiding passengers through the airport.
CPH also closed 40% of the terminal area and combined operations to give passengers a better experience – and the airlines, ground handlers and authorities better working conditions.
CPH investing in the future
Before the coronavirus hit, CPH was investing around
This was the case, for example, with the second phase of Pier E, the opening of which in October marked the end of the single largest capacity project for decades. The new terminal building has flexible stands and gates, boarding bridges and flexible bus gates, taxiways and a brand-new passport control area.
The building is adorned with William Soya’s brilliant ceiling-installed sculpture, which was donated by the
Overall, in 2020 CPH reduced the cost of investments and building projects by around
But CPH still has its eye on the future. In
Collaboration with airlines and partners
There has been close contact and collaboration between CPH, the airlines and our partners throughout the corona crisis.
Before the crisis, 150 stores and food outlets were open in and around the terminals. At the end of the year, there were just nine. Throughout the year, CPH worked with our partners to get through the crisis as well as possible. Opening times were revised and new agreements negotiated with most partners. When the pandemic grounded aircrafts in the spring, the airport did not impose parking charges.
In the first quarter of 2021, CPH agreed with the airlines to focus on the restart and adjust the agreement for the period 2019-2023 on the charges paid to use the airport. The adjusted agreement addresses the unintended consequences that the corona crisis has had for the assumptions underlying the charges agreement. This has created calm and balance for both CPH and the airlines up to and including 2023.
CPH co-founder of
Nobody knows the full extent of the corona crisis yet or how long it will last. Aviation was one of the first sectors to be hit by the crisis and will be among the last to come out on the other side. Yet climate change is a challenge that the aviation industry and society will have to deal with and find solutions to in the years ahead.
In 2020, CPH entered into several exciting partnerships that will ensure the development of sustainable fuels in
CPH helped to establish the innovative
In October, a consortium led by
Europe’s best airport
On
CPH can still be Europe’s best airport on the other side of the coronavirus pandemic when we are able to once again travel on holiday or business and experience the world. CPH will still be an attractive, safe and efficient airport for passengers and customers. CPH will maintain CPH’s important social role in the creation of growth and jobs through its position as an important Nordic transport hub that can connect
Dividend
Dividend to shareholders in 2020 and 2021 have been suspended because of the financial situation and conditions for receiving compensation from the Danish government’s support packages.
Outlook for 2021
Global aviation continues to face significant uncertainty from the ongoing COVID-19 pandemic as well as other factors such as economic uncertainty and climate change.
The pandemic will continue to affect the number of flights and passengers in 2021, both for leisure and business travel. Airlines have announced that they will continue to operate with reduced capacity and will scale their business based on demand.
Due to the structural uncertainty that COVID-19 has created for air travel in
As a consequence, CPH will continuously assess and adjust the level of operating costs and investments and will advise the market as and when a meaningful outlook can be provided.
The Group’s Annual Report is attached in PDF format.
P.O. Box 74
Lufthavnsboulevarden 6
2770 Kastrup
Contact:
CFO
Tel.: +45 3231 3231
Fax: +45 3231 3132
E-mail: cphweb@cph.dk
www.cph.dk
CVR no. 14 70 72 04
Attachments
- Announcement to the
Nasdaq Copenhagen Stock Exchange 26 Marc 2021 - Copenhagen Airports AS Group Annual Report 2020
- Copenhagen Airports AS Parent Company Annual Report 2020
© OMX, source