SGS says timing of recovery to pre-COVID 19 levels 'unclear'

Saudi Ground Services Co. (SGS) said that the timing of returning to the pre-COVID 19 profit levels is "unclear", but market conditions are expected to improve over the coming two years, Al Arabiya TV reported, citing Mohammed Mazi, Executive Vice President of Finance.

“We started to map out strategies for resuming air flights in the Kingdom over the coming 2-4 years,” said Mazi, expecting a quicker recovery in Saudi Arabia due to its strategic location as well as Hajj and Umrah visits, which will reflect positively on the company’s profitability.

Despite the pandemic’s negative impact on the company’s financials, this boosted its performance positively and the way it survived the crisis, Mazi indicated.

“The industry is facing more complicated implications, mainly, the client’s turnout and trust to use the air travel services. We have reviewed our internal measures in line with the pandemic outbreak. We have currently introduced airplane disinfection services to maintain passengers’ safety, which raised SAR 30 million,” Mazi noted.

SGS reported SAR 249.4 million losses in H1 2020, versus net profit of SAR 227.9 million in the prior-year period.