Swedish state-owned airport operator Swedavia has announced that the government has planned to provide Skr3.15bn ($337m) to boost the financial position of the operator.
Swedavia stated that this cash injection is a stakeholder contribution.
Swedavia owns, develops and operates ten airports in Sweden and is completely owned by the government.
During the Covid-19 pandemic, commercial air travel drastically decreased and the operator reported a 98% decline in passenger numbers, which amounts to around Skr500m each month.
Swedavia CEO and president Jonas Abrahamsson said: “We welcome our owner’s support in a very difficult situation. Society in general and the aviation industry in particular are in the midst of an unprecedented crisis.
“During the spring, Swedavia took forceful savings measures to counter the decline in traffic, but our operations are totally dependent on variable revenue from our customers, and as of two months ago, we have lost about Skr500m a month.
“This capital injection is thus crucial so that we can maintain our infrastructure and ensure Swedish access by air.”
As per its assessment, the aviation market this year and next year will be affected. Swedavia will modify its operations to the decreased passenger traffic and market situation.
The company plans to review costs and advance operational excellence, which will lead to the lay-offs of 800 full-time employees, as announced in March.
Abrahamsson added: “As for the development of the aviation market in the slightly longer term, there are great uncertainties. We are now analysing what a new normal situation in the market could look like.
“Although we do not foresee any need for either new terminal or runway capacity over the next few years, it is important to maintain both flexibility and preparedness in order to continue developing our airports in the longer term.”
Shareholder contribution need the Swedish parliament and the EU Commission approvals.
Last week, Swedavia signed a long-term agreement with Veovo to install its Revenue Management System.