Irish airline Ryanair’s reported on Monday that its pre-tax profits had crashed to 200 million kronor ($33.4 million) in the second quarter, down 85 percent on the corresponding period of last year.
Ryanair’s report is a sobering read for many regional Swedish airports which have surfed the wave of Ryanair’s recent success and expansion.
Skavsta airport, south of Stockholm, relies on Ryanair for 90 percent of its traffic and has seen massive development in recent years with a new hotel and terminal buildings.
“If you put all your eggs in one basket then the exposure to risk is high,” said Anders G Högmark of the association of Swedish regional airports (Svenska Regionala Flygplatsförbundet) to Dagens Industri.
Ryanair is a company used to bumper profits and Anders G Högmark expects the company leadership to enforce a savings program in order to turn the figures around.
Högmark told Dagens Industri that there is little scope for rationalizing costs or introducing any further charges and so he expects Ryanair to make cuts in less profitable routes. Many of these cuts could affect routes from Sweden, Högmark argues.
Stockholm Skavsta MD, Dot Gade, is not overly concerned about Ryanair’s plans, although she is acutely aware of the airport’s reliance on the airline.
“When you have such an important client of course we notice if things are not going so well for them, ” Gade said to Dagens Industri, adding, “if there is one airline that will survive and prosper, it is Ryanair.”