Malta International Airport plc - 2020 Traffic Results

On 20 January 2021, Malta International Airport plc announced that during 2020, passenger movements dropped by 76.1% to almost 1.75 million – the lowest number since MIA took over the management of Malta’s only air terminal in 2002. This drop is in line with the trend in Europe. In fact, data provided by Airports Council International (ACI) shows that European airports suffered an overall contraction in passenger traffic of 79.6% in 2020 following a cumulative loss of over 6,000 routes.

Looking ahead, MIA explained that several international industry organisations are predicting that, following a very weak Q1, the tourism industry may expect to start seeing signs of recovery with the onset of the summer season. In this context, MIA’s CEO Mr Alan Borg noted that “in order for this prediction to materialise it is imperative that, over the next weeks, measures aimed at boosting consumer confidence take centre stage. A faster vaccine roll-out should be complemented by the establishment of much-needed uniform testing regimes and travel requirements at a European level.” Mr Borg also added that failure to act quickly in this regard could result in another lost summer with catastrophic implications for the tourism industry and the wider economy.

MIA also welcomed the International Air Transport Association’s (IATA) recent appeal to key EU policymakers to agree on a common digital European Covid-19 vaccination certificate which would constitute a huge stride towards the safe reopening of borders without the need for testing and quarantines. In this respect, the airport operator remarked said that this critical time should be used to put in place the technology required to scan such certificates and make the entry into the country as seamless as possible.

Despite the current uncertainty and shorter-term planning, MIA and the Malta Tourism Authority have remained in active discussions with partner airlines to work on rebuilding Malta’s connectivity. Stakeholder collaboration in this regard is essential for the Maltese islands to be able to enjoy connections with Europe and beyond offered by a mix of low-cost and flag carriers.

Mitigation measures & guidance

Given that Q1 2021 is expected to be as challenging as 2020, MIA will continue to work actively towards the preservation of its liquidity through any cost-cutting measures deemed necessary. Moreover, the Board of Directors is scheduled to meet on 24 February 2021 to conduct an assessment of the current situation, which continues to evolve. During this meeting, the Board of Directors will also be approving the company’s financial statements for the year ended 31 December 2020 and discussing other items on the agenda, including shareholder dividend.

In conclusion, MIA noted that given the prevailing uncertain environment and the fluidity of the situation coupled with the limited visibility of the way ahead, it does not have sufficient data to provide the market with reliable guidance in relation to 2021 forecasts at this time.