DUBAI: Saudi Ground Services said it had slashed operating costs as it posted a loss caused by the collapse in global air travel.
The company which services 28 airports across the Kingdom and processed more than 690,000 flights a year before the pandemic, reported a total comprehensive loss of SR446.7 million ($118.9 million) for last year, it said in a Tadawul stock exchange filing.
“Despite the challenges faced by the company in light of the pandemic, Saudi Ground Services has executed several initiatives aimed at increasing the efficiency of operation and thus reducing the impact of the pandemic on the company’s profitability,” it said in the statement.
Companies that specialize in baggage handling, cargo and other airport services have been among the hardest hit over the last year as global air travel collapsed. Swissport, the world’s largest provider of ground and cargo handling services in the aviation industry, has axed thousands of jobs in response to the crisis in aviation. Smaller operators such as Hong Kong-based Jardine Aviation have also cut jobs.
Despite the challenges faced by Saudi Ground Services over the last year, it said that it had executed several strategies aimed at boosting efficiency which limited what would otherwise have been a much bigger hit to its business.
As a result, it reduced operating costs by some SR581 million in the current year, it said.
“In addition to cost reduction initiatives, the company has taken certain initiatives such as the opportunity to increase sales by providing disinfection services for aircraft in addition to other services which also contributed to reducing the impact of the pandemic on the company’s profitability.” it said.