Gatwick crashes to £321m loss on pandemic passenger plunge
Gatwick Airport today said it swung to a £321m loss in the first half of the year after the Covid-19 pandemic caused a 66 per cent plunge in passenger numbers.
In the six months ended 30 June, 7.5m passengers travelled through Gatwick, a decrease of 14.7m compared to the same period in the prior year.
Gatwick said it suffered a “near-complete drop in volume during April, May and June 2020” and said recovery was slowed in June by government quarantine measures.
The collapse in air travel sparked a 61 per cent decline in revenue for the first half of the year.
The airport said it expects its 2020 calendar year passenger numbers to be 65-70 per cent lower than 2019 levels (46.6m), but warned traffic would not return to 2019 levels until 2024.
Gatwick Airport this week announced that it could cut up to 600 jobs as part of a major restructuring caused by the coronavirus pandemic – equivalent to 24 per cent of its workforce.
Today Gatwick said it had already reduced headcount 17 per cent in the year to 30 June, from 3,046 to 2,515 staff.
It also said it has cut the majority of its fixed term contracts, reduced pay and hours 20 per cent for remaining staff and received £12m in government furlough money,
Gatwick said it had cut operating expenditure, saving over £100m in 2020 with £73m annual savings expected to be permanent.
The airport group said it was in discussions with its lenders about a covenant waiver.
It said it secured a £300m term loan in April and said at 30 June it held cash of £326.7m (£300m revolving credit facility fully drawn).
Gatwick also said it had access to a £150m facility to ensure interest payment obligations can be made over 12 months.