Swissport revenue surge as air cargo recovers

Acquisitions, new business and a recovering air cargo industry saw Swissport report a 38 per cent increase in 2014 revenues to SFr2.9bn.
The Switzerland-based provider of airport ground and cargo handling services said that aviation industry trends last year included outsourcing, growing passenger numbers in line with capacities and “an air cargo business that is continuously recovering, in some regions even increasing”.
Ground Handling showed steady growth in most of the countries in which Swissport operates and that its cargo business “delivered a positive year in all aspects”.

The biggest impact on Swissport’s 2014 results was the successful integration of competitor Servisair after closing the acquisition in late December 2013.
Said the company: “Swissport could not only strengthen its overall market share, but also became the largest ground handler in the UK & Ireland with operations at more than 30 airports, and further increased its footprint in Latin America by being present in 10 countries in the region.”
Excluding the Servisair deal and the negative effects of foreign exchange headwinds, portfolio rationalisation and low de-icing due to a mild winter season, Swissport grew ahead of the market and increased its revenue by 6 per cent on a like for like basis.

“Compared to the previous year, the aircraft turnaround frequencies increased 5.8 per cent year-on-year and the continuously recovering air freight market accounted for an increase of 5.4 per cent in air freight tonnage year-on-year (both excluding Servisair).
"Including Servisair, the number of turnarounds handled in 2014 adds up to 2.1 million flights, and tonnage moved comes to four million.”
New contract wins including the multi-year pan-European ground handling contract with Germanwings, the multi-year agreement with Saudi Airlines Cargo for Brussels and Amsterdam, the global strategic partnerships with Cargolux and Transaero, and contract wins with United in London Heathrow and Washington Dulles International.

“In 2015, Swissport will continue to capitalise on the structural growth in the aviation industry and the ongoing outsourcing trends, and will put a focus on further realising synergies and streamlining and rationalising its cost base and portfolio.”
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