Despite the challenges faced by the aviation sector, the gross revenue of Lithuanian Airports amounted to EUR 22.7 million last year (54% less than in the record-breaking year 2019). Lithuanian Airports incurred a loss of EUR 9.8 million in 2020 due to the result of the asset depreciation test. It highlights that despite the challenges of the pandemic, airports have managed to generate positive operating profits, retain critical partners, and implement some of the expansion projects that have been launched.
According to Ms Eglė Čiužaitė, the Chairman of the Board of Lithuanian Airports, the COVID-19 pandemic, which hit the whole world last year, was the main factor behind the decline in revenues and losses incurred.
‘People’s mobility options, and aviation have been one of the sectors most affected by the pandemic, and Lithuanian airports are no exception. We tried to balance the challenges and commitments to the staff as much as possible. Still, the situation was new to us: With restrictions and procedures in countries changing quickly, we had to react promptly and efficiently. However, we are positive about the future and believe that the vaccinations, the Green Passport, and the introduction of unified cross-border travel procedures in many countries will contribute to a steady recovery of aviation flows and commercial services at airports,’ says Ms Čiužaitė.
Compared to 2019, aviation-generated revenues in 2020 are down by almost 59%, while non-aviation revenues from airport food establishments, commercial areas, and rental of premises are down by more than 43%. According to the representatives of Lithuanian Airports, the company made the necessary decisions and managed not to lose its key partners, handle high infrastructure costs, and generate a positive operating profit.
It is argued that the reported losses for the previous year are mainly due to the asset depreciation test performed by auditors, which showed a lower current value of the assets under management than previously documented.
According to Mr Marius Gelžinis, the CEO of Lithuanian Airports, despite the difficult conditions, last year the company managed to implement some of the essential stages of airport development and modernisation that were started before the pandemic.
‘The implementation of strategic development projects has remained an important priority even during the pandemic and will continue in the future. We are pleased that some of the projects started last year were completed. We believe that they will contribute to strengthening the position of Lithuanian Airports not only in the region but also in the world during the period of recovery,’ says the CEO of the company.
The financial results of Lithuanian Airports have been certified by the auditing firm KPMG Baltics. The report is available here.
About Lithuanian Airports
The network of Lithuanian Airports includes three air gates in Vilnius, Kaunas and Palanga. In 2020, Lithuanian Airports serviced 1.8 million passengers and 30,000 flights.