Swedish Airports Group Lays Off 1,900 Workers as Traffic Slumps

(Bloomberg) --

Sweden’s biggest airport operator says it’s laying off at least 1,900 workers as the fallout from the coronavirus halts traffic and forces people to cancel travel plans.

State-owned Swedavia AB, which manages 10 of the country’s largest travel hubs, said it has decided to implement the temporary job cuts amid a wider program aimed at addressing a “dramatic decline in passenger volume combined with uncertain market prospects.”

For the first two weeks of the month, Swedavia saw a drop in passenger volume of about 30% at its airports, but in recent days that’s increased to as much as 90%, the Stockholm-based company said in an emailed statement on Friday.

“Operations in the company will be adapted to a minimal level based on the market situation, and at the bigger airports, operations will be concentrated temporarily to certain sections,” the company said. “At the same time, a comprehensive review of the company’s investment portfolio is being carried out.”

The company’s chief executive officer Jonas Abrahamsson said, “Although our financial position is good, drastic and immediate measures are now required. Measures include immediately laying off 1,900 workers and warning that another 800 jobs could soon follow.

Swedavia operates Sweden’s biggest airports including Arlanda in Stockholm and Malmo near Denmark.

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