And it’s going to be a long wait – with the airport estimating 36-48 months. Or three to four years.
Gatwick Airport from above – Image, Gatwick Airport.
This detail was released in the airport’s annual results, as it takes actions to protect itself from the fallout of COVID-19.
Passenger numbers and revenue were up at Gatwick Airport for the nine months ending 31 December 2019, with 36.9 million passengers passing through the airport – an increase of 0.3%, with one in five flights being a long-haul operation.
Of course, since then, COVID-19 has played its part, with a decline in passenger traffic. The airport has taken steps including closing the North Terminal and reducing flights between 14:00 and 22:00 each day.
These steps came online on the 1st April 2020 and are continuing, pending a review to return to normal operations when airline traffic and passenger demand increases. It’s aiming to be the best possible position when the recovery comes, taking into account requirements from stakeholders, as well as Government public health advice.
On top of that, the airport is preserving cash, with the Capital Investment programme deferred, putting over 90% of eligible staff on the UK Government’s Job Retention Scheme to preserve jobs, reducing the headcount of permanent staff through a special severance scheme and all staff taking a pay reduction.
To improve its liquidity, on 3rd April Gatwick secured a £300m loan with a consortium of banks too.
However, this doesn’t distract from the length of the recovery. Whilst business will be in a position to recover, the passenger numbers will take time to appear – with the airport expecting pre-COVID numbers within 36 to 48 months.
That’s a long wait.
In Quotes
Gatwick Airport, Chief Executive Officer, Stewart Wingate said:
“The airport continued to grow in difficult market conditions during the period covered in these results. However, the world has changed dramatically since then and Gatwick has taken decisive action to ensure that it remains in a strong position to recover from the dramatic fall in passenger numbers and the wider impacts of COVID-19.
“The COVID-19 crisis has been unprecedented and our priority has been, and continues to be, maintaining the health and safety of our passengers and employees. We also have a resilient business and by taking steps to reduce costs, we have protected jobs and expect to recover from this crisis.
“One measure we took to reduce costs was to defer spending on our capital investment programme to secure improved resilience, however for future growth we still expect to progress many of these projects including our plans to bring the existing Northern (stand-by) Runway into routine use to offer more travel choice for passengers and new jobs for Gatwick and the wider region.
“Of course, any growth must be sustainable, and we also remain focussed on our ongoing efforts to reduce the airport’s impact on the environment. I’m pleased to say that we continue to make significant progress in this area, and we are committed to reducing our environmental impact even further in the years ahead.”
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My guesstimate is that numbers will recover close to pre-COVID-19 levels in 6 to 10 months after the lock downs are lifted.
By late summer international routes will be up and running and a full schedule – at least full in terms of any re-sized aircraft numbers in each airline fleet – will be seen by November-December 2020. All hysteria on the projection front.
The EU, UK, worldwide, governments are dumping trillions to pump up and maintain businesses, airports, airlines, etc. Already, one senses things are quickly returning to normal in various sectors, countries. China has reopened and rebounded with unprecedented speed. Austria, Greece, U.S., Spain, Italy, Germany, Switzerland, Liechtenstein, South Korea, Sweden are all returning in steps to full opening. The lock downs will end in about 1 to 2 months worldwide. It’s just about over and that should be the positive message sent to the public. By July most of the world will be up and running full speed ahead to make up for lost time and money.
Globally, the large and medium trade fairs, conventions, concerts, congresses, shows, events, conferences that attract thousands of participants, customers, for the most part, have only been postponed. Some have been canceled, but 85 percent or so are still scheduled to take place in 2020 from late May to December. This means full airplanes, hotels, taxis, restaurants.
Future holiday bookings in the U.K. are up as Brits plan their vacation escape in the millions from July through the Autumn. There will be a huge rush for flights, hotels, restaurants and attractions from pent up demand. Already, Greece has opened up for holidaymakers. Beaches, tavernas, museums, hotels, airports, rental cars, ferries are all up and running. The flood of customers will arrive in June. It will be crowded, so make reservations beforehand.
People, businesses will be back to their routine in no time. It’s embedded in their DNA – consider the European experience in the 14th century and the Bubonic Plague. Half the population of Europe died off within 3 years! But business, work, agriculture rebounded with a new start.
Life must and does go on regardless of the most severe human and natural events. It’s just that way.
Thanks for helping with the conversion.. “with the airport estimating 36-48 months. Or three to four years” I was having trouble with that. 😉
I like to help those who struggle with mathematics (like myself).
I would work down to weeks and days… but my time is limited.. 😉