In the first six months of 2020 Amsterdam Airport Schiphol reported a -62.1% slump in passengers to just 13.1 million vs 34.5m in H1 2019, while total revenue generated by concessions for Schiphol Group decreased almost in line with traffic by -61% to €39m/$47m.

 

In H1 2020 Schiphol Group’s total revenue decreased -49% or €376m/$451m, down from €766m/$918m (H1 2019) and while construction of the new pier and the redevelopment of Departure Hall 1 are ‘progressing’, other projects have been postponed – including the construction of the new terminal – for at least two years.

 

However, at AMS average retail spend per departing passenger rose by +1.3% to €13.10/$16 in the first half of 2020, while food & beverage spend per head fell by -1.6% to €4.80/$5.80, partly attributable to the temporary closure of food & beverage outlets.

 

Tanja Dik, Amsterdam Airport Schiphol’s Director of Consumer Products & Services will be addressing all TRMarketplace visitors and exhibitors in a keynote webinar session to kick off the inaugural digital forum on 28 September. Find more information here. 

 

The operating result of Consumer Products & Services decreased from €95m to €15m and revenue decreased by €82m (-50.4%), mainly due to lower retail and food & beverage concessions which dropped by €48m compared with the first half of 2019.

 

Food & Beverage outlets closed their doors, with the exception of a few Grab and Fly counters. In addition, many retail shops closed their doors because of the limited passengers and as a health precaution for shop staff.

 

TRAFFIC IMPROVEMENT IN JUNE AND JULY

Revenue from rents and leases increased by 3.3% from €87m to €90m. This is attributable to an increase in service charges and new leases in recently constructed buildings.

 

 

In June, Schiphol said passenger traffic recovered as travel restrictions within the EU were eased. As a result, the very low passenger volume in April and May (-97%) improved in July (-80%).

 

In the third week of August, passenger volumes further recovered to -74%. However, uncertainties will continue to exist for the time being, which makes it “difficult to predict the development of traffic in the near future,” said the group.

 

By reducing its operations and closing part of Schiphol’s terminal during the first months of the crisis, Schiphol Group adapted to the new situation while remaining open and reducing its operational expenses.

 

Schiphol Group has received the NOW1 government grant (Noodmaatregel Overbrugging Werkgelegenheid; temporary governmental compensation for labour costs) and applied for the NOW2 grant.

 

HEALTH AND HYGIENE MEASURES

To prevent transmission of Covid-19 and to give passengers and staff confidence in safe and responsible air travel, a full set of measures is in place.

 

This includes information for passengers, the use of health questionnaires, social distancing at the airports, the wearing of face masks, improved ventilation and cleaning, the installation of sanitising equipment (including UV-C cleaning) and risk-based testing of passengers.

 

“There is a need for further international collaboration to align travel requirements,” said the airport in a statement.

 

“Schiphol is in favour of a system of testing for travel to and from countries with an orange or red risk profile. This can reduce the need for travel bans and quarantine measures. The international response is currently insufficiently aligned and coordinated. This impacts air travel, and therefore economic recovery.”

SCHIPHOL EXPECTS TRAFFIC DECLINE OF 55-72% FOR 2020

For 2020, Schiphol Group expects a decrease in passenger numbers of between 55% and 72% compared with 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 behavioural changes by passengers and businesses,” added the airport.

 

“Scenarios for the return to 2019 traffic levels indicate that this will not happen until the 2023-2025 time frame. In light of this, Schiphol Group has decided to adjust its expenses to reflect the new outlook.”

 

Schiphol Group aims to reduce overall operating expenses by approximately 20-25% in 2021 and 2022, realised across all operating expenses, including services and contracts. This will also mean a reduction in the number of jobs at Schiphol Group.

 

The Management Board has put a request for advice to the Central Works Council (‘Centrale Ondernemingsraad’) on the organisational adjustments. A social plan will be developed with the unions. The job impact is still uncertain, but is expected to be in the order of several hundred positions out of a total workforce of around 3,000.

 

Various cost-saving measures have already been implemented, including Schiphol taking the decision not to pay out dividends for shareholders and variable income for management over 2019.

 

“The current crisis also offers us an opportunity for reflection,” added Schiphol. “Not only are we adapting to the new circumstances, we have a clear ambition to improve as well; building back better instead of a return to business-as-usual.”