The upward trend in expenses can be predominantly attributed to the escalation in energy resource prices, the mounting expenses related to materials and inventory, and a notable rise in labor costs. These factors collectively contribute to the heightened cost structure within the industry.
According to the unaudited interim report for January-June 2023, Riga Airport closed the first half of 2023 with a profit of 2.2 million euros.
The turnover of the Airport in the first half of this year was 34.43 million euros, or 37 percent more than previous year. It consisted of 20.47 million euros in revenue from aviation services (+25 % as compared to 2022) and almost 14 million euros in revenue from non-aviation services (+60 % as compared to 2022).
The growth of the company’s net turnover was positively influenced by the increased number of passengers thanks to the diverse and extensive network of routes, which allowed to even out the seasonal fluctuations in the number of travellers. The number of passengers in the first half of the year reached 3.05 million, or 37 % more than last year. The Airport handled 29 thousand flights (an increase of 14 %).
The cost of the company’s economic activity in the first half of 2023 was 34.9 million euros, which is a quarter more than last year. The increase in costs is mainly due to the increase in the price of energy resources, increasing costs of materials and inventory, as well as an increase in labour costs. In turn, the scope of investments in January-June reached 4.7 million euros.
“The number of flights and passengers continues to show trends of stabilisation and recovery, the flow of transfer passengers is recovering, which is promoted by the offer of new destinations from Riga. Although we still feel the impact of the war started by Russia and the related global sanctions, as well as the impact of inflation on the number of services provided by the Airport and the results of our economic activity, the financial results of the first half of the year are significantly better than expected,” says Laila Odiņa, Chairperson of the Board of the Riga Airport.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.