It is estimated that 236 people will be affected by redundancies due to the fact that the travel restrictions in force in September are expected to drastically reduce passenger traffic at the airport in the coming months, and the company will not be able to maintain its current staff. employees.
The expected annual number of passengers has fallen to the level last seen 17 years ago, and the airport operator expects a traffic deficit of about 90% in the autumn and winter months. Budapest Airport says the layoffs are aimed at ensuring the long-term efficient operation of the company and protecting the remaining jobs.
Budapest Airport finds that Europe’s busiest airports have seen a 70-90% reduction in traffic since the pandemic broke out. According to the International Air Transport Association (IATA) estimate, passenger traffic at European airports will not reach the levels observed before the crisis in the coming years.
Traffic at Ferenc Liszt International Airport fell by 99.3% in April compared to the same period in 2019. Although the number of passengers increased slightly in the summer months, reaching almost 400,000 in August compared to less than 10,000 registered in April, the new restrictions Travel introduced in September again reduced passenger traffic to the level recorded in early summer.
Currently, less than 3,000 passengers use the airport daily, which is 6% of the traffic recorded in September last year. Based on the additional flight cancellations that are expected and the reduction in passenger traffic, Budapest Airport expects annual passenger traffic to be around 5.5 million this year, a third of their original plan.
The press release also shows that the business plan of Budapest Airport for 2020, prepared before the coronavirus pandemic, will not be fulfilled. The company has lost virtually all its revenue due to the almost complete cessation of air traffic recorded in recent months. Therefore, it has introduced numerous cost-cutting measures since the spring.
During the redundancy in May, Budapest Airport expected a faster recovery of traffic. Therefore, it planned a staffing based on the annual figure of 10 million passengers expected at that time, took all possible measures as an employer and participated in the government’s salary support program, to protect as many jobs as possible.
However, the travel restrictions in force in September are expected to drastically reduce passenger traffic at the airport in the coming months. This means that the airport operator will not be able to maintain its current workforce and will therefore implement another reduction, which is expected to affect 236 people.
Budapest Airport says it will spend the financial resources absolutely necessary for the safe operation of the airport, reducing the number of investments and reallocating existing funds for basic operations and salaries. However, the operator finds that the company’s financing is ensured thanks to the responsible financial management in recent years.