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Gatwick reports £321m loss for first half of 2020

Passenger numbers at Gatwick fell by 66% year-on-year in the first half of 2020 as the pandemic buffeted the aviation industry.

Just 7.5 million passengers passed through the London airport from January to June compared to more than 22 million in the first half of 2019.

The UK’s second-largest airport remained open throughout the pandemic but the collapse in passenger demand meant that H1 revenue plunged by 61% year-on-year to £144 million.

It reported a loss for the six-month period of £321 million, compared to a profit of £47.7 million in 2019.

EBITDA fell 98% to £3.2 million, down from £184.7 million in the first half 2019.

More than 70% of Gatwick’s employees remain on furlough and the airport plans to cut 600 jobs – almost one quarter of the workforce – as part of a company-wide restructure.

Gatwick forecasts that overall 2020 passenger traffic will be about 65-70% below 2019 levels, but warns of uncertainty with “the lifting or re-imposition of UK quarantine restrictions a key factor”.

The recovery period to pre-pandemic traffic levels is forecast to be four to five years.

Stewart Wingate, Gatwick chief executive, said: “Like any other international airport, the negative impact of Covid-19 on our passenger numbers and air traffic at the start of the year was dramatic and, although there are small signs of recovery, it is a trend we expect to continue to see.

“However, we are focussed on ensuring the business remains robust and is best placed to take advantage of future growth.

“We have protected our financial resilience by significantly reducing our operational costs and capital expenditure.

“We are going through a proposed company-wide restructuring programme and I want to thank all my staff for their hard work to date whilst we go through this difficult time.

“We will emerge a fitter and stronger organisation, best placed to remain flexible and agile in responding to growth opportunities.”

Gatwick currently has 18 airlines flying to 115 airports in 42 countries.

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