Copenhagen Airport (CPH) has emphasised the ‘severe impact’ of the coronavirus (Covid-19) pandemic on Denmark, which relies on international connectivity, tourism and global trade.

Before the pandemic, CPH would welcome around 83,000 travellers daily. Currently, it is handling less than 900.

As the virus spread from China and national borders worldwide closed in February and March, air traffic was virtually non-existent during the final weeks of Q1 2020.

As reported, shopping centre revenue at CPH grew by 4.8% to DKK 917.3m/$137m in 2019, while total non-aeronautical revenue increased 3.2% to DKK 1,930.5m/$288m. Gebr. Heinemann is the incumbent duty free operator.

‘HISTORICALLY POOR FIRST QUARTER RESULTS’

Thomas Woldbye, CEO, Copenhagen Airport said: “Normally, we have 83,000 travellers on a daily basis. In the last week of March, we had an average of 1,600. In April, that number dropped to fewer than 900 per day.

“More than 90 aircraft are parked long-term at the airport. We have decided they can park free of charge to reduce airline costs. A total of 143 out of 146 shops and food and drink outlets are closed. In other words, virtually all our income and our business platform has been wiped out in only a matter of a few weeks.”

Copenhagen Airport is handling less than 900 passengers on a daily basis.

Despite virtually normal operations in January and February, the abrupt standstill in March led to historically poor first quarter results.

Profit before tax amounted to DKK79.4m (excluding one-off items). This represents a 69.3% drop compared to the same period last year. Revenue amounted to DKK764.3m, a decrease of 21.4% compared to Q1 2019.

Woldbye added: “With virtually no air traffic during April and May and the extensive uncertainty in terms of when the world will reopen, we are unable to provide guidance for the near future. 2020, however, will be a challenging and difficult year for the aviation industry. That said, CPH will be ready to help restart the economy and the airport when the world reopens.”

In the meantime, CPH is rolling out a comprehensive plan to preserve cash. Operating costs and planned investments for the rest of the year will be reduced, saving the company DKK1bn.

“Being categorised as critical infrastructure, our job is to remain in operation even if that currently implies large daily losses. To address that situation, we have established substantial credit facilities to ensure CPH remains in operation during the upcoming period,“ Woldbye remarked.

The airport says that 143 of its 146 shops and food and drink outlets are closed.

In addition, CPH is utilising the Danish government’s financial support packages. Effective from the second quarter, CPH will receive compensation for around one third of its current wage and salaries costs through the wage and salary compensation scheme.

As a result, CPH has avoided redundancies. Instead, 2,200 of its 2,600 employees have been temporarily furloughed in a rotation scheme.

Woldbye said: “We’re doing everything we can to avoid redundancies, but of course it will depend on the depth and duration of the crisis, as well as on the support measures provided by the government. The effects are evident in our local community (Tårnby), which as a municipality has suffered a greater spike in unemployment than almost anywhere in the country.”

He added: “There are never any guarantees, however, and if this crisis leads to permanent changes to the aviation industry, we will be forced as a business to consider the new situation. Until that happens, we will do everything in our power to make it through the crisis and salvage all we can, including our position as a European hub.”

COPENHAGEN AIRPORT REMAINS FULLY OPEN

Meanwhile, Copenhagen Airport has reported a 99% drop from 2.5m air travellers in April 2019 to just 25,936 last month.

Thursday 9 April was the slowest day in April 2020 with just 424 passengers. In fact, this was the slowest day at CPH since 1946, the first year of peace after the second World War. That year, the airport averaged 630 passengers a day.

“Although the crisis has knocked the bottom out of the aviation industry and the sources of income have vanished, Copenhagen Airport remains open for the very few passenger planes still operating and for the vital air cargo traffic carrying medicines and personal protective equipment.

“Staying open is costly and although CPH has suspended projects and cut costs by close to one billion Danish kroner, the situation remains critical,” Woldbye commented.

He continued: “This is the worst crisis for the aviation industry since World War II, both globally and in Denmark. However, we also know that the crisis will eventually pass once a treatment is found, hopefully before too long and there is subsequently a vaccine against the coronavirus.

“If Denmark is to have a strong international airport in the future, we need to start planning for a safe and secure reopening of regional and global aviation.”

Gebr. Heinemann is the incumbent duty free operator at Copenhagen Airport.

Woldbye emphasises the importance of coordinating rules and initiatives when reopening airports, initially within the EU and between Nordic countries.

“Obviously, it’s no use if we have 28 EU countries setting out 28 different sets of rules relating to social distancing, hygiene, PPEs and so on. This would only create confusion — and therefore a sense of insecurity. If we are to have an actual reopening of commercial air traffic, we will need uniform, international standards for handling passengers, both at airports and onboard aircraft.”

At present, the Danish aviation industry is preparing a comprehensive presentation to the Government and Danish Parliament on how to open business travel and tourism.

“CPH’s goal is to retain our position as northern Europe’s most important hub and to restore the best possible connections to the rest of the world. Keeping Denmark connected is our primary objective,” Woldbye emphasised.

He concluded:  “We must remember that Denmark entered the corona crisis with a strong economy and a competitive international airport. Now we are through the first part of the crisis, we should use that to rebuild and strengthen Denmark’s position. We can save and earn billions by restoring tourism and access to travel quickly.”