Swissport achieves higher revenue and overall result in first half of 2019

posted on 6th September 2019 by Justin Burns
Swissport achieves higher revenue and overall result in first half of 2019

Swissport increased its revenue by 6.1 per cent to €1.52 billion in the first half of 2019 compared to €1.43 billion in the same period in 2018.

The company’s revenue growth continued to be profitable with its operating EBITDA up 7.2 per cent to €121.9 million for the first six months of 2019.

Operating cash-flow for the first half of 2019 climbed to €78.1 million, up almost four-fold compared to the same period last year (€20.2 million).

Swissport’s revenue for the second quarter ending 30 June 2019 increased to €776.5 million compared to €753.6 million for the second quarter 2018, an increase of three per cent compared to the same period in 2018.

In the first six months of 2019, Swissport handled 1.02 million passenger flights globally (minus 1.3 per cent), serving some 128 million airline passengers.

Changes in Swissport’s client portfolio at London Stansted Airport and at Bristol Airport in the UK, and the strategic decision to discontinue the ground service business at Los Angeles International Airport in the US, were the main reasons for the 3.2 per cent decline in passenger volumes compared to the 132 million served in the same period last year.

The adjustment at Los Angeles, taken in the second half of 2018, the handler said has been delivering the expected economic benefits to Swissport’s US business.

“Our solid half-year results were driven by profitable revenue growth and our continued efforts to further improve our cost efficiency,” said Eric Born, president and CEO of Swissport International.

“As the global aviation market now shows visible signs of a slowdown, we are implementing additional measures to safeguard earnings and to improve the Group’s profitability in the medium term.”

The ground handler said considering such demand side pressures, Swissport’s increased EBITDA in the first half of 2019 is a solid result.

Profitable organic revenue growth, the first-time consolidation of Australian Aerocare for a complete six-month period, compared to just four months in the first half of 2018, a strong de-icing season in the first three months of 2019 and continued growth in the Middle East were all factors contributing to the positive half-year result.