“Rapid recovery” of the air cargo segment from mid-2020 contributed positively to the overall result
Ground handler Swissport processed 4.1m tons of cargo in 2020, a 12.3% fall in volumes over 2019 as the pandemic caused the global aviation market to collapse.
Swissport saw a 68.9% fall in passenger numbers to 82m in 2020, while the total number of flights for some 500 airline customers handled fell 59% to 1.7m.
Swissport said in a statement that it expects “regionally varied market recoveries from the summer onward and is cautiously optimistic for the second half of 2021”.
Said Christoph Mueller, group president & CEO of Swissport International: “After a devastating 2020, we expect regionally varied market recoveries for the second half of 2021.
“Last year has been extraordinarily difficult for the entire sector. Covid-19 has essentially wiped out airline demand for the classic ground services business between March and the end of the year.
“Demand for air cargo logistics was also very heavily impacted but still fared better and helped stabilize the company. For the second half of 2021, we believe a robust rebound could be possible in some regions while other regions will continue to suffer for some time.
“The speed at which vaccination protection is established at domestic level and on individual continents, as well as entry regulations between countries, will be crucial here – especially for the private travel segment.”
Swissport’s revenue decreased by roughly 50% compared to 2019, due to the unprecedented decline in global demand for air travel and, as a consequence, airport ground services.
The “rapid recovery” of the air cargo segment from mid-2020 contributed positively to the overall result.
“Stability and reliability is what Swissport brings to the table when we talk to airlines about their post-Covid plans and a potential outsourcing of ground service activities,” said Mueller.
He continued: “With the company refinanced and under new ownership of US and UK investment funds, our deleveraged balance sheet and cash reserves of around 500 million euros, Swissport is positioned as the partner of choice for airlines as they get ready to turn the page on Covid-19 and embark on what we expect to be a long-drawn-out recovery.”
As of 21 December 2020, the lead shareholders of Swissport are investment funds managed by affiliates of Strategic Value Partners, LLC, Apollo Global Management, Inc, TowerBrook Capital Partners, Ares Management, Cross Ocean Partners and King Street Capital Management, LP – all former senior secured lenders of Swissport.
The new shareholders have appointed Christoph Mueller as Swissport’s future chairman of the Board of Directors. Mueller has joined the Board of Directors and is currently serving as interim President & CEO of the company. For the interim period until a permanent CEO is appointed, David Siegel, an aviation industry veteran, is serving as Chairman of the Board.
Swissport is fully committed to further driving its corporate transformation and to becoming a more agile partner, providing airlines with better process flexibility and system compatibility than any of its competitors. The senior management team has recently been joined by Laurent Sauvage, who has assumed responsibility in the newly created role of a Chief Transformation Officer. He reports to the CEO.
