The Saudi Ground Services Company recorded losses of 454.295 million riyals during 2020, compared to 423.353 million riyals profits in 2019.
According to Arabiya, we see that revenues fell 50.7% to 1.251 billion riyals, compared to 2.54 billion riyals in 2019.
The company said in a statement that the losses came due to the temporary suspension of domestic and international commercial flights as of mid-March 2020 as a result of the precautionary measures taken by the government, which have gradually returned to certain destinations, reaching 56% of the total annual volume of operations. Before the pandemic.
The temporary suspension of the trips caused a direct impact on the company's revenues, which decreased by 50.7% and by an amount of 1,288 million riyals.
The pandemic also indirectly affected the investment in property rights in the Saudi Al-Amad Company, which contributed to a loss of 22.3 million riyals for this year.
Despite the challenges that the company faced in light of the pandemic, the company has undertaken many initiatives aimed at increasing operating efficiency and thus mitigating the impact of the pandemic on the company's profitability and ensuring its continuity and competitiveness. It was able to achieve initiatives to increase operating efficiency that led to a reduction in operational costs by 581 million SAR in the current year, including a permanent cost reduction of 31 million Saudi riyals for each quarter, which contributed to reducing losses to reach 446.7 million riyals (from losses estimated at 1,027 million riyals in the absence of initiatives).
