Gatwick looks to recovery following £465m loss
Passenger numbers at Gatwick fell 78 per cent in the year to December as the Covid-19 pandemic closed borders around the world.
The airport remained open throughout the pandemic; however, all revenue streams were impacted, and the facility has reported a £465 million loss for the twelve-month period.
Gatwick Airport, chief executive, Stewart Wingate said: “It will come as no surprise that, like any other international airport, the negative impact of Covid-19 resulted in a financial loss for the business last year which sadly also saw us need to reduce our workforce by over 40 per cent.”
To improve liquidity, Gatwick secured a £300 million loan with a consortium of banks in April, while the company has drawn £250 million under the Covid Corporate Financing Facility from the Bank of England.
A strategic reduction in capital expenditure also saw the airport defer over £380 million from the investment originally planned in 2020 and 2021.
Operating costs were reduced by over £140 million in 2020 through a variety of actions renegotiating contracts and consolidating all air traffic and passengers into one terminal.
Wingate said: “Due to our swift actions the business remains resilient and robust with our focus on ensuring we are best placed to take advantage of a return to international travel this summer.”