Saudi Ground Services 'very close' to break-even point, aims to turn profitable this year: Exec

Mohammed Mazi, Executive Vice President for Financial and Business Development, Saudi Ground Services Co.

Saudi Ground Services Co. (SGS) recorded positive indicators for 2021, said Executive Vice President for Financial and Business Development Mohammed Mazi.

The company is “very close” to achieving break even and looking at becoming profitable in 2022, he told Al Arabiya TV.

The company's operating flight rate is close to 85%, expected to reach the break-even point.

SGS’ operations of international flights have improved with the lifting of precautionary measures, rising from 63% at the year-start to 73% currently, while operations of the internal lines rose from 80% to 90%.

The executive said the company's operations will witness a greater recovery in the next quarter, with the start of Umrah and Ramadan seasons.

He pointed out that the firm has maintained the same levels of operational costs, which was achieved in 2020, backed by the strategies that it worked on since the start of 2022 to boost operational efficiency and reduce expenses.

It will continue with these initiatives until year-end, focusing on turning to profitability this year.

SGS narrowed its losses to SAR 254.4 million in 2021, from SAR 454.3 million in 2020, according to Argaam's data.