Schiphol Group suffers €246 million loss; To cut hundreds of jobs
Due to the coronavirus crisis, the Royal Schiphol Group suffered a loss of 246 million euros in the first half of this year. Passenger numbers fell significantly, and the airport group doesn't expect them to recover before 2023 at the earliest. The group is therefore cutting expenses, and that includes cutting jobs, the Schiphol Group said with the presentation of their interim figures on Friday.
"The job impact is still uncertain, but it is expected to be in the order of several hundred positions out of a total workforce of around 3,000," Schiphol Group said. This involves the entire Royal Schiphol Group, which includes Amsterdam Airport Schiphol, Rotterdam The Hague Airport, and Lelystad Airport. The group also owns a majority stake in Eindhoven Airport. They didn't say which airports or departments are vulnerable to job cuts.
The coronavirus crisis had a major impact on the Schiphol Group. The loss suffered in the first half of this year is even more significant when looking at the 133 million euros in profits made during the same period last year. Passenger numbers decreased by 62.1 percent compared to the first half of last year to 13.1 million, flight movements at Schiphol decreased by 52.1 percent, and cargo volumes showed a decline of 14.5 percent
For the entire 2020, Schiphol Group currently expects a decrease in passenger numbers between 55 percent and 72 percent, compared to the record year 2019. "The outlook for the coming years is very uncertain, and depends on the course of the pandemic, whether a vaccine becomes available, international coordination in travel measures, the profile of the economic recovery and behavioral changes by passengers and businesses," the group said.
Various scenarios indicate that traveler numbers won't return to 2019 levels until sometime between 2023 and 2025. "In light of this, Schiphol has decided to adjust its expenses to reflect the new outlook." The group aims to cut costs by 20 to 25 percent in 2021 and 2022. Cost savings will cover all operating expenses, including services, contracts, and jobs. "A social pan will be developed with the unions."