State-owned Airports Company South Africa (Acsa) reported on Tuesday its financial results for the 2020/21 financial year (which ended on March 31). It stated that the impact on aviation and tourism of the Covid-19 pandemic during that period had been “devastating”.

The company had, for only the second time in its 28-year history, recorded a loss – in this case, of R2.6-billion. During the 2019/20 financial year, it had made a profit of R1.4-billion. Revenues, which came to R2.2-billion, were less than a third of those accrued during the previous financial year, when they had totalled R7.1-billion.

Every one of Acsa’s revenue streams had been hit by the pandemic, and the lockdowns imposed to try and counter it. Aircraft landing fees, which had amounted to R1.3-billion during 2019/20, collapsed to R368-million during 2020/21. Aircraft parking fees fell from R55-million in the former year to R29-million in the latter year. And passenger service charges evaporated, from R2.387-billion to R414-million. The company’s non-aeronautical revenues, which included advertising, car hire, hotel operations, parking, property rental and retail, recorded a drop of 61% (from R3.38-billion to R1.34-billion).

Air traffic worldwide fell by 65%. Across Africa, the fall was even higher – 68%. In South Africa, the number of passengers passing through Acsa’s airports fell from 21-million in 2019/20 to just 4.6-million in 2020/21, amounting to a collapse of 78.2%. Air traffic movements at the company’s airports fell by 60%, from 249 519 to 99 880.

“These figures represent the low point in terms of pandemic impact because the 12 months involved either complete lockdown or significant restrictions on domestic and international flying,” pointed out Acsa CEO Mpumi Mpofu. “Since the start of the current financial year on 1 April there has been a continued gradual increase in domestic passenger figures, although off a low base. However, we are encouraged by developments of the past several weeks that suggest we can anticipate accelerated improvement.”

To meet the then looming crisis, the company started in March last year to take a number of actions to reinforce its short-term financial position and augment its long-term sustainability. In the subsequent months, it sold its 10% share in Mumbai International Airport, for R1.26-billion, obtained a loan from the Development Bank of Southern Africa amounting to R810-million, and issued preferential shares to the government in return for R2.3-billion. As a consequence, Acsa’s debt ratio increased from 17% in 2019/20 to 23% in 2020/21. The company also reduced its staff complement by 20%, cut its operating costs by an amount of R1.2-billion, and last year suspended capital expenditure projects that would have required more than R14-billion in funding.