LFV withdraws notice but the situation remains serious

Published: 21 December 2020 11:39

LFV withdraws the notice of 500 posts placed in April this year, but the situation remains serious. The picture of the financial conditions is somewhat clearer now than this spring and such a comprehensive notice is therefore no longer justified, but the business will show large deficits in the coming years and therefore a new notice may be necessary in the future.

When the pandemic broke out this spring, LFV lost large parts of the revenues. Air traffic decreased dramatically and since most of the revenue comes from airline fees, and there was great uncertainty about what revenue LFV would receive at all, the situation was serious. Against this background, LFV was forced to give notice of redundancies corresponding to approximately 500 posts. Since then the financial conditions have become somewhat clearer. LFV has adapted its operations to lower traffic volumes and reduced by 60 posts through, among other things early measures, LFV has also implemented savings and started structural changes that provide savings effects in both the short and long term. The EU has made a decision-in-principle regarding the fee system that governs the fees for the airlines, which means that LFV for 2020 and 2021 is entitled to income corresponding to the actual costs. Taken together, the measures taken and the decision on the fee system mean that the notice of 500 posts is no longer justified. However, as the business is showing large deficits in the coming years, LFV needs to continue to streamline and reduce costs, and a new notice cannot be excluded in the future, unless air traffic increases sharply.

- Aviation is still an industry in crisis, says Director General Ann Persson Grivas. Air traffic in Sweden has decreased by more than 65 percent compared to last year and it will take several years before it returns to pre-pandemic levels.