Flughafen Zürich AG waives dividend payments in 2019
Like many airport operators, Flughafen Zürich AG is also affected by the drop in traffic due to the Covid 19 pandemic. The Board of Directors therefore proposes to waive the dividend payment.
The effects of the crisis surrounding the coronavirus have led to significant earnings losses for Flughafen Zürich AG since mid-March. According to a statement, the Board of Directors and the management are convinced that the airport company "is robustly positioned and solidly financed for the current situation with a strong balance sheet and the measures taken to reduce operating costs and capital expenditure". The company refers to assessments by the rating agencies Standard & Poor's and Fedafin AG, both of which recently confirmed Flughafen Zürich AG's AA rating. If necessary, financing via the Swiss capital market will be examined as a matter of priority. As things stand, Flughafen Zürich AG does not expect to have to apply for a bridging loan from the Swiss government.
In the current extraordinary situation, securing liquidity is the top priority for Flughafen Zürich AG. Comprehensive measures to safeguard liquidity and reduce costs have already been decided and implemented, short-time working has been introduced and investment planning is being adjusted on an ongoing basis. As a further measure, it will now be proposed to waive the distribution of dividends at the Annual General Meeting scheduled for June 11, 2020. Due to the Federal Council's regulation to continue to forego major events, it is planned to hold them without the possibility of physical attendance.
"Flughafen Zürich AG is a solid company with a long-term focus. In terms of responsible corporate management, we consider it important to retain liquidity in the company in order to be able to cope with the crisis in a safe and entrepreneurial manner," said Andreas Schmid, Chairman of the Board of Directors, explaining the move. Flughafen Zürich AG has maintained an attractive dividend policy for many years, Schmid added: "Distributions of additional dividends from capital contribution reserves would still be possible in the future, provided that the company's business prospects and the economic environment permit this." (bw)
