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Gatwick Funding Limited, through its parent Ivy Holdco Limited, published its unaudited interim consolidated financial statements for the six months ended 30 June 2022 on 23 August 2022. For this period, revenue was £291.5m, EBITDA was £148.3m, and profit after tax was £50.6m, with 13.1 million total passengers. Passenger demand reached 74.3% of pre-pandemic levels in Q2 and 59.1% for the half year, while the airport revised its 2022 traffic forecast to 32.8 million passengers and recruited 400 new security staff.
| Date | 23 Aug 2022 |
| Time | 07:00:03 |
| Category | Miscellaneous |
| ID | 8269W |
Issuer: Gatwick Funding Limited
Date: 23 August 2022
Gatwick Funding Limited (the "Issuer")
a company incorporated in Jersey (registered number 107376)
Half year results publication - Gatwick Airport
The Issuer's parent, Ivy Holdco Limited, today published its report and unaudited condensed interim consolidated financial statements for the six months ended 30 June 2022.
The Ivy Holdco Limited report and unaudited condensed interim financial statements consolidate the results of Ivy Holdco Limited, the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. These financial statements and a related investor presentation are available on the Gatwick Airport Limited website at www.gatwickairport.com/investor.
Strong demand and encouraging air traffic volumes accelerates Gatwick's recovery, while economic uncertainty remains
· Unprecedented growth drove operational challenges across the sector in June, with Gatwick taking early, responsible action to manage capacity and stabilise operations
· No need to extend capacity declaration beyond end of August as airport returns back to usual business operations
· 400 new security staff recruited, with Gatwick providing staff to support other operators on the airport, as part of a continuous effort to return to high standard service levels
· Airport is cautiously optimistic with air traffic forecasts revised up for 2022, however uncertainty remains over the macro-economic climate
Strong passenger demand - and encouraging air traffic volumes - following the lifting of all UK travel restrictions in March 2022 has accelerated Gatwick's recovery from the devastating impacts of the pandemic, the airport revealed today in its half year financial results
H1 results:
· Passenger demand was at 74.3% of pre-pandemic levels for Q2, after all UK travel restrictions were removed, and 59.1% for the half year period
· 13.1 million total passengers passed through the airport in first six months of the year
· Revenue was £291.5m for the six months ending 30 June 2022
· Return to profitability with EBITDA at £148.3m and a profit after tax of £50.6m
Following strong demand, Gatwick has revised its traffic forecasts for 2022 to 32.8m passengers as a result of increased demand in H1. The airport however notes that continued macro-economic uncertainty - including inflationary pressures on costs and passenger demand for the winter season may impact these forecasts.
Following significant investment, Gatwick has just completed a project to resurface its main runway to improve resilience, and the redevelopment of the airport's train station is progressing well, with completion due in 2023.
Increased demand also drove significant operational challenges across the entire aviation sector. In response Gatwick took early action to ensure reliable flight timetables by gradually increasing its declared capacity, and recruited over 400 new security staff to reduce delays. With additional resources across the Gatwick operation in place no further moderation of flying programmes is necessary.
Gatwick has provided staff to support other airport operators - including airline baggage handlers - as part of a continuous effort to improve their performance, reduce delays and return to high standard service levels.
As reported at Gatwick's full year results, the South Terminal reopened on 27 March as demand returned - an operation described as the equivalent of opening a medium-sized airport overnight - following its closure during the pandemic from 15 June 2020.
Gatwick's recovery has also seen its long-haul network grow with 40 routes now announced, including new airlines such as Norse and Bamboo flying to New York and Hanoi respectively, British Airways starting a new service to Cape Town and jetBlue adding a new daily service to Boston, in addition to their daily flight to New York. WestJet and Air Transat currently also fly to a range of destinations across Canada, while both British Airways and TUI fly numerous other long-haul services to the US, Mexico and the Caribbean.
Stewart Wingate, Chief Executive Officer, Gatwick Airport said: "We still have some considerable way to go, but strong demand has fast-tracked Gatwick's recovery from the pandemic, particularly in the last quarter since all UK travel restrictions were removed. Air traffic volumes have reflected this strong passenger demand and have bounced back to around 75% of pre-COVID levels.
"The unprecedented growth in traffic lead to short term operational issues in June, however our decisive early action to limit the airport's capacity in the crucial school holiday period of July and August has ensured passengers have experienced reliable flight timetables over the summer months. We are now very much operating business as usual and do not see any reason to extend the capacity declaration."
"Despite some broad economic uncertainty, we are also looking forward to a successful second half to the year, with new, exciting airlines and routes coming on stream and continuous improvement in the high service standards Gatwick is known for."
Further information on the financial results and the associated investor presentation can be found at www.gatwickairport.com/investor
NOTES
About Gatwick Airport
Gatwick is the UK's second largest airport and flies a range of both short and long-haul point-to-point services. The airport is a vital piece of the UK's national infrastructure and is also a major driver for both the regional and national economies. In 2019, a new long-term partnership was formed with VINCI Airports which purchased a 50.01% stake in the airport.
About VINCI Airports
The world's leading private airport operator, VINCI Airports operates more than 50 airports in 11 countries in Europe, Asia and the Americas. Thanks to its expertise as a global integrator, VINCI Airports develops, finances, builds and manages airports by providing its investment capacity and its know-how in optimizing operational performance, modernizing infrastructures and managing their operations and environmental transition. VINCI Airports is the first airport operator to have committed to a global international environmental strategy in 2016, to achieve the goal of net zero emission across its entire network by 2050.
For more information: www.vinci-airports.com
https://www.linkedin.com/company/vinci-airports/
About Global Infrastructure Partners
GIP manages the remaining 49.99% interest in Gatwick and is a leading independent infrastructure fund manager that makes equity and debt investments in high quality infrastructure assets in the energy, transport, water/waste and digital infrastructure sectors. GIP manages US$84 billion for its investors. Its 46 portfolio companies have combined annual revenues of US$61 billion and employ nearly 100,000 employees. For more information on GIP please visit http://global-infra.com
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