Southend airport has been put up for sale by owner Esken following a strategic review.
Esken, formerly known as Stobart Group, disclosed in March that a sale of the airport was being explored.
The company has now confirmed that it has started the process for the sale of the Essex site, described as a “key strategic airport asset”.
Southend airport has struggled to recover from closure during the pandemic and the withdrawal of Ryanair and Wizz Air, although easyJet agreed a multi-year deal in January which saw five destinations served.
The agreement saw three summer routes introduced plus year-round services to Amsterdam and Paris.
However, Esken, which is also selling a profitable renewables business, reported increased losses at its aviation division of £3.8 million in the year to February 28 against £800,000 in the previous 12 months. This came despite a £1.4 million injection “related to the recovery of airline marketing support payments”.
Year-on-year passenger numbers fell by 5.3% from 94,000 to 89,000, blamed on “staffing challenges” and industrial action at airports across Europe which reduced some inbound flights to Southend airport during the second half of the firm’s financial year.
The company sold its Star Handling ground handling operations at Manchester and Stansted airports for $4.8 million last month. The company also secured £50 million in new borrowing in November.
As a result Esken’s aviation division is now “entirely focused” on the recovery of Southend airport.
The company said: “That airport has started the year positively as demand for flights across the market has shown a strong recovery towards pre-pandemic levels.
“The return of a route to Amsterdam and increased flight frequencies to Faro mean that there is a 30% uplift in planned easyJet flights during the summer.
“Flights will then continue through the winter months with the announcement that easyJet will operate flights to Paris in addition to Amsterdam starting from 29 October.
“These new routes and airline partnerships are encouraging signs that LSA’s [London Southend Airport] recovery is now underway.
“While signs are encouraging, the aviation industry as a whole has not yet fully recovered from the effects of the pandemic.
“As a result and in view of the current sale process, Esken has taken the decision not to reinstate guidance for LSA at this time.”
The company added: “The board is encouraged by the progress on the sale process for renewables and now has a sound base with which to progress the process for the sale of LSA.
“The board would expect to update the market with further substantive progress in the months ahead.”
Executive chairman David Shearer said: “We installed a new, experienced senior management team and the case for the airport remains well founded as demonstrated by the increase in routes served by easyJet.”