Schiphol 2008 Profit Down, Tough Year Ahead

February 19, 2009

Amsterdam airport operator Schiphol Group's profit fell 41 percent in 2008 as higher security, maintenance and personnel costs, as well as weaker property valuations, outweighed a slight sales rise, it said on Thursday.

Chief executive Jos Nijhuis was blunt in his assessment: "We are moderately pleased with the results achieved in 2008. The outlook for 2009, however, is bleak."

The airport group, which also holds stakes in Brisbane Airport and in Terminal 4 of New York's John F. Kennedy Airport, warned that net profit would fall in 2009 by a further 50 percent. Schiphol Group's 2008 profit was EUR187 million euros (USD$235.5 million) versus EUR316 million in 2009.

Sales rose 0.7 percent to EUR1.15 billion.

Schiphol faces stagnating passenger growth due to a passenger tax imposed in July, while new anti-terrorism security costs and regulatory pressure to cut airport charges have hurt profits.

Nijhuis added in a statement that passenger numbers and air transport movements would decline by 6 to 10 percent, while cargo was projected to contract 15 percent.

Schiphol is the fifth-largest passenger airport in Europe.

Schiphol Group warned last month that it would cut 10 to 25 percent of its 2,200 workforce as a result of a strong decline in traffic and increased international competition.