Gatwick in talks with lenders, after losing another £245 million…

gatwick-in-talks-with-lenders,-after-losing-another-245-million…

Gatwick in talks with lenders, after losing another £245 million…

Gatwick in talks with lenders, after losing another £245 million in the first half of 2021
2021-08-14 19:41:00
Gatwick says it made a loss of £245m in the first half of 2021, as passenger numbers collapsed to 569,000. It expects to have 9 million passengers by December, but that is lower than the 10 million in 2020.  In 2019 it had 46.5 million. The airport is now in talks with its lenders to ease the terms of its loans, due to the losses.  It lost £465.5 million in 2020.  Due to its weak finances and continuing low demand for air travel, Gatwick has asked its lenders to agree to short-term waivers on its loans to avoid it defaulting. This was also done last year, and the same thing happened at Heathrow. Virgin Atlantic, one of Gatwick’s longest-standing airline customers, has ceased its operations at Gatwick for now, while British Airways has moved all of its short-haul flights to Heathrow, due to the low level of demand. However, BA said it will continue with at least long-haul operations from Gatwick. The airport said it had  779m of liquidity at the end of June, which it hopes would last it for the next 12 months, with no more staff being made redundant.  It has cancelled or deferred more than £570m of capital spending that had been planned for 2020, 2021 and 2022. .Tweet Gatwick Airport announces almost £250 million loss so far in 2021 By Connor Stringer, Reporter @connor_stringer (The Argos) 13th August 2021 GATWICK lost £244.6 million during the “most challenging six months the airport has witnessed”, it has been announced. The forced travel bans and a collapse in demand saw just 569,000 people pass through the airport from January to June. Citing expensive PCR tests and long isolation rules, bosses said the government “needs to act now” to allow a return of freedom of travel – or risk lagging behind Europe The airport was forced to reduce operating costs by 34.4% in the first half of the year through the renegotiated contracts and temporary infrastructure shutdowns. As a result, staff costs are £31.3 million lower (46.4%) in the first half of the year. Gatwick Airport, Chief Executive Officer, Stewart Wingate said: “First I would like to thank all our staff for their hard work and fortitude throughout what has no doubt been the most challenging six months the airport has witnessed with its low passenger and air traffic volumes. “I remain certain that Gatwick will recover and as a business we are financially and operationally well placed for that. “In the UK we are all emerging to enjoy more freedoms due to our world class vaccination programme, however we are in danger of squandering the advantage that vaccination programme has afforded us for international travel. Our Government needs to act now and remove unnecessary and costly PCR testing requirements for passengers, particularly for those double vaccinated. “UK travel recovery should not be allowed to lag behind the US and Europe. Passengers need the travel rules simplified so they can choose to travel more freely and enjoy much needed breaks and reunions with family and friends which are currently much more attainable for those in Europe and the US.” Since March, people dropping off travellers have been had to pay £5 to access the airports North Terminal forecourt. It is hoped the charge will reduce traffic congestion an

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