Gatwick reduces pandemic losses following strong end to 2021
Gatwick has reported that despite ever-changing travel restrictions, the last few months of 2021 helped the airport reduce its annual losses by 25.6 per cent.
In the year ended 31 December, the London hub shrank its pandemic-induced losses from £465.5m to £370.6m, while its EBITDA remained at a negative £26.3m because of the reduced passenger traffic.
“As it was for many airports, 2021 was a difficult year for Gatwick but, despite constantly changing travel restrictions and the emerging Omicron variant, we managed to end the year strongly and reduced our losses compared to the previous year,” said chief executive Stewart Wingate.
Following the end of travel restrictions and the consequent surge in passenger demand, Gatwick said it will reopen it South terminal to cater for increase passenger numbers during what it appears to be a busy summer season.
Wingate told Morning Wire that in the second and third quarter of 2022 the airport forecasts passenger levels to reach 65 and 85 per cent of pre-Covid levels.
The airport has predicted an increase in both short and long-haul flying, with Easyjet having the greatest capacity ever with 120 routes and 79 aircraft, while long-haul demand has not showed signs of stopping following the end of travel restrictions.
“Major announcements from our airlines about significantly increased flying schedules, and from government on airport slot regulations and the relaxation of travel restrictions, mean we are now looking forward to a strong summer,” Wingate added.
According to the chief executive, despite the encouraging signs it will take time to fully restore consumer confidence in tourism and travel.
“I urge government to make 2022 the year when all travel restrictions are removed completely, including the unpopular passenger locator form.”
Even though pre-pandemic levels are still far away, Gatwick can rely on a productive relationship with its airline customers.
The hub has kept fares drastically lower than its European and UK competitors, including Heathrow, charging airlines £11 per passenger.
“We have nothing equivalent to the covid recovery tax that some airports may charge,” Wingate told Morning Wire “Airport fees may be calculated in different ways – so caution should be taken making comparisons – however Gatwick’s average airport charges for 2022 are around £11 per passenger, which includes landing and take-off fees. These compare favourably with European airports of similar size.”