Heathrow losses now £2.9bn and consolidated net debt £15.2 bn

heathrow-losses-now-29bn-and-consolidated-net-debt-15.2-bn

Heathrow losses now £2.9bn and consolidated net debt £15.2 bn

Heathrow losses now £2.9bn and consolidated net debt £15.2 bn
2021-07-27 11:36:00
Heathrow has announced that its cumulative losses from the Covid-19 pandemic have hit £2.9 billion. In its results for the first half of 2021,  Heathrow’s revenue dropped from £712 million in the first six months of 2020 to £348 million in the first half of 2021, which is 51.1% less than in the first half of 2020, and 76.2% less than the first half of 2019. Its pre-tax loss widened 18% to a little over £1 billion.  It had 3.85m passengers, which is 75.1% less than the same period in 2020, and 90.1% less than the first half of 2019.  Heathrow (it has a complex structure of numerous companies and levels) had  consolidated net debt of £15.2 billion — not much less than the airport’s £16.9 billion regulated asset base (RAB), or the CAA’s proxy for its value.  Heathrow had been allowed, by the CAA, to increase its RAB by £300 million, to £16.9 billion.  Its chief executive John Holland-Kaye is using the half-year figures to warn about a covenant waiver on its various loans.  The group of Heathrow companies has £4.8 billion of liquidity, (ie. ability to borrow) with average cost of debt just 1.64%. .Tweet Heathrow’s results for the half year to 30th June 2021 https://www.heathrow.com/content/dam/heathrow/web/common/documents/company/investor/reports-and-presentations/financial-results/2021/Heathrow-(SP)-Limited-2021H1_final.pdf   Heathrow Airport’s pandemic losses hit £2.9bn 26 July 2021 (ITV) Heathrow has announced that its cumulative losses from the Covid-19 pandemic have hit £2.9 billion.Fewer than four million passengers travelled through the west London airport in the first half of the year.  It took just 18 days to reach that total in 2019.  The airport warned that its passenger numbers could be lower this year than in 2020. Some 22.1 million passengers used the airport in 2020, with more than half of those travelling in January and February, before the virus crisis led to a collapse in demand. Heathrow described recent changes to the quarantine and testing requirements for people arriving in the UK as “encouraging”, but warned that the rules are “holding back the UK’s economic recovery” ….   stuff about Covid, quarantine etc … … Heathrow’s revenue dropped from £712 million in the first six months of 2020 to £348 million in the opening half of this year. Meanwhile, pre-tax loss widened 18% to a little over £1 billion. https://www.itv.com/news/london/2021-07-26/heathrow-airports-pandemic-losses-hit-29bn .   Alastair Osborne writing in The Times, business commentary; 27.7.2021 [Heathrow’s billionaire owners] span the Chinese government and sovereign wealth funds from Singapore and Qatar: a crew happy to take out £3.8 billion of dividends in the good times. And, even if the airport has racked up £2.9 billion of losses since corona struck, it’s not as if investors have been hard hit. The nearest thing to a cash call is £750 million raised last year via ADI Fi

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