The directors of Malta International Airport have withdrawn their dividend recommendation in view of the business slowdown and uncertainty caused by the COVID-19 pandemic.
The airport will also postpone non-essential capital outlay and seek to cut operating costs by 30 per cent.
Activity at the airport has almost ground to a halt since air travel was banned as a precaution to stop the spread of COVID-19.
"In the context of the current situation, the directors have reconsidered their original recommendation for the payment of a final net dividend to shareholders of €0.10 cents per share, announced on the 26 February 2020," MIA said.
"Having evaluated the overall position, the board of directors believes that with a view to managing the company’s cash reserves in a moment of severe curtailment of revenue generation, and of maintaining the company’s organisational set-up and structures in a state that would be able to recover immediately once the situation normalises, it is prudent to withdraw its recommendation for the declaration of a dividend, over and above the interim dividend already paid by in September 2019."
The directors, the CEO and the chief financial officer will take a voluntary 30% reduction in their remuneration. The management has also accepted salary
reductions, effective from April 1.
MIA said it is adjusting its capital expenditure programme for 2020, suspending all non-essential projects and shifting focus to the completion of major projects which are in an advanced stage, including a new multi-storey car park and the expansion of the cargo village.
“We are confident that the measures announced today will enable us to manage the overall situation and our cash flows in a manner that puts us in a position to meet all the company’s financial obligations during the current financial year," CEO Alan Borg said.
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