Gatwick airport hit by GBP343m loss as passenger numbers fall

Gatwick airport has reported a GBP343m pre-tax loss after passenger numbers plummeted by two-thirds in the first half of the year, as the coronavirus takes a heavy toll on the aviation industry. Britain’s second-busiest air hub, which earlier this week announced plans to cut 600 jobs, said revenues had plunged by 61% in H1 from GBP372m to GBP144m. Gatwick is operating flights from only one of its two terminals and said passenger numbers had fallen by two-thirds year on year in the first six months, from 22m to only 7.5m. The airport is forecasting it will take four to five years for air traffic levels to return to pre-pandemic levels. “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,” said Stewart Wingate, the CE of Gatwick airport. “As with any responsible company we have protected our financial resilience by significantly reducing our operational costs and capital expenditure.” The company, which said passenger numbers were down 80% year on year this month, is slashing capital expenditure by more than £300m over the next two years and has cut costs by in excess of GBP100m. More than 70% of staff remain on furlough.<br/>