Sharp fall in traffic and financial results due to COVID-19 pandemic

Ambition of Royal Schiphol Group: to build back better

Today, 19 February 2021, Royal Schiphol Group publishes its Annual Results for 2020. The COVID-19 pandemic has had an unprecedented impact on the airports of Royal Schiphol Group and theaviation industry as a whole. The number of passengers at Amsterdam Airport Schiphol decreased by 70.9% to a total of 20.9 million in 2020. The Netherlands remained connected via Schiphol to 316 destinations, 16 fewer than in 2019. 135 of these destinations were intercontinental (2019: 138). The number of air transport movements at Schiphol was 227,304, a decrease of 54.2% compared with 2019. Cargo volumes showed a decline of 8.2% to 1.4 million tonnes.

The net result for 2020 is a loss of 563 million euros (2019: a profit of 355 million euros). Revenue decreasedby 57% to 688 million euros (2019: 1,615 million euros). Schiphol Group has applied for NOW government support (Noodmaatregel Overbrugging Werkgelegenheid) to the amount of 112 million euros. No additional government support has been requested. No bonuses for the management board and no dividends have been paid out. Schiphol reduced overall operating expenses with around 20% by scaling down its operations and implementing cost saving measures, including services and contracts, company wide. Schiphol Group restructured its organisation to adapt to the economic developments as a result of the pandemic. Capital expenditure was reassessed. In 2020, Schiphol reduced its expenditures for capital projects with around 25%.Schiphol prioritised investments in safety and hygiene measures to facilitate safe and responsible travel. The main investments in 2020 were the doubling of taxiway Quebec, the construction of the new pier and the redevelopment of Departure Hall 1 with new security lanes. Schiphol will continue to invest in maintenance, safety, sustainability, quality of service and innovation in order to build back better.

In order to guarantee sufficient access to liquidity, Schiphol Group raised an amount of 2,235 million euros by issuing (green) bonds and exercising other facilities to secure liquidity for investments and manage the impactof COVID-19 on its financial performance.

CEO Dick Benschop: “Our strategy is to build back better putting aviation on track for ambitious sustainability goals while contributing to economic recovery and the earning power ('het verdienvermogen') of the Netherlands.

National and international collaboration is needed between governments, airports, airlines, and travel organisations to ensure safe and responsible travel. We are currently in a lockdown, but the overall outlook for 2021 is positive, although there are serious uncertainties. Travel protocols based on testing regimes andthe ramping up of vaccination, replacing travel bans and quarantine measures, will outline the way forward.

Building back better puts quality at the fore front. The value of Schiphol for the Netherlands is the strong network that connects the Netherlands to economic centers worldwide. Rebuilding that network will contribute to the overall economic recovery in the Netherlands. We will do this while improving the quality oflife through reducing emissions and disturbance.”

Key developments

  • The total number of passengers at all Dutch airports of Royal Schiphol Group decreased by 70.9% to 23.5 million (2019: 80.5 million). Eindhoven Airport saw passenger numbers drop to 2.1 million and Rotterdam The Hague Airport to 0.5 million; decreases of 68.8% and 76.9% respectively.
  • In November 2020, the Ministery of Infrastructure and Water Management approved the Civil AviationPolicy Memorandum 2020-2050 (the 'Luchtvaartnota'), setting out its expectations for the development ofthe Dutch aviation sector, and outlining the need to ensure a sustainable future for the industry. Schiphol Group welcomes the paper, which is in line with its Vision 2050.
  • As per 1 June 2020, Ms Buis has been appointed to the Management Board as Chief Projects and Assets Officer. She succeeded Mr Van den Berg, who chose not to be reappointed for a second term as Chief Commercial Officer.
  • Schiphol and partners started a trial with a sustainable aircraft-towing vehicle (Taxibot), which consumes considerably less fuel than taxiing with the use of aircraft engines.
  • In 2020, Schiphol launched its nitrogen action programme. Together with Air Traffic Control the Netherlands (LVNL), Schiphol launched a joint programme with measures to reduce noise disturbance,'minderhinderschiphol.nl'.
  • The opening of Lelystad Airport is scheduled for November 2021, subject to approval by parliament.

Click on top of this page to download the full PDF document about the annual results 2020.