Group Annual Report for 2020

Company Announcement
Copenhagen, 26 March 2021

A billion-kroner profit turned into a loss in 2020

For Copenhagen Airport, 2020 was the worst year since the Second World War. Passenger numbers plummeted from 30.3 million to 7.5 million – the lowest since 1970. In spring 2020, CPH reached a low point of just 424 passengers on 9 April. As a result of the drop in passenger numbers, revenue decreased by 71.2% to DKK 1,575.7 million in 2020 and a pre-tax profit of around DKK 1.3 billion in 2019 turned into a loss before tax of DKK 828 million in 2020.

2020 was also a year in which employees, management and owners, in partnership with CPH’s other stakeholders, stood together to weather the storm. Amongst others, CPH’s lenders have provided credit facilities of DKK 6 billion to help CPH through 2020 and given CPH the platform to restart and rebuild in 2021.

During the year, a united CPH was geared up to act quickly in an unpredictable reality of ever-changing travel and testing guidelines.

In 2020, CPH took significant actions with positive effect on performance including substantial cost reductions of DKK 200 million and actively use the crisis to simplify and identify new, effective solutions. In addition, planned investments were reduced by approximately DKK 800 million. Furthermore, CPH implemented organisational adjustments to the activity level expected for the foreseeable future. The adjustments will reduce yearly operational cost by approximately DKK 500 million.

As socially critical infrastructure and Denmark’s gateway to the world, CPH could not simply shut down and wait for better times. CPH had to stay open for the very limited passenger traffic that remained, and not least for important air cargo. This has meant that expenditure has far exceeded revenue.

Collaboration to save jobs
Excellent collaboration with the authorities and the government brought flexibility to the salary compensation scheme, allowing CPH’s employees to be put on rotation or furloughed.

Overall, CPH received DKK 348 million in compensation packages during the year of coronavirus. This gave CPH the breathing space to carry out the essential company adaptations and allowed CPH to protect the jobs of 2,600 employees until the end of August, when CPH had to make the first lay-offs. At the end of the year, there were 772 fewer full-time positions (FTEs).

As a consequence of the very low activity level at the airport, CPH and the unions worked together on, among other things, upskilling and division of labour. The joint effort and excellent collaboration meant that CPH was able to avoid cutting a further 300 jobs.