Gatwick airport has reported an 18 per cent fall in first-half pre-tax profits as the war in Iran disrupted international travel and pushed passengers to book flights closer to departure.
The UK’s second-busiest airport said pre-tax profits fell to £136.5 million in the six months to June 30, from £166.2 million a year earlier.
Passenger numbers through Gatwick’s two terminals fell 4.7 per cent to 19.1 million. Long-haul traffic bore the brunt of the downturn, dropping 9.2 per cent as the conflict in the Middle East weighed on demand, while short-haul passengers declined 3.9 per cent.
The airport said concerns about jet fuel supplies had also affected passenger demand, although it stressed that there had been no shortages so far.
Travellers have been booking closer to departure amid uncertainty over the conflict, Gatwick said, while some low-cost airlines have reduced their flight programmes in response to tougher trading conditions.
The weaker passenger numbers came despite a rise in operating profits, which increased 5 per cent to £197.2 million. Revenue rose 4.8 per cent to £515.2 million.
Operating costs also climbed 5 per cent to £318 million, with staff costs accounting for more than a third of the total. Staff expenses rose 7.4 per cent to £7.5 million.
Gatwick cut its security workforce earlier this year after launching a voluntary redundancy programme in December. The scheme, which ended in February, contributed to a 3.1 per cent, or 82-person, reduction in the full-time workforce to 2,572 at the end of June.
Pierre Hugues-Schmit, chief executive of London Gatwick, said: “Despite a challenging geopolitical and economic backdrop, London Gatwick has continued to perform well.”
“We are also excited about our longer-term growth opportunities and with the legal process for the Northern Runway Programme now complete, we can turn our focus from planning to detailed design work and delivery,” he added.
The comments come after the Court of Appeal cleared the way earlier this month for Gatwick to proceed with its long-awaited second-runway expansion, dismissing a challenge by campaigners against a High Court ruling.
The £2.2 billion scheme, approved by Transport Secretary Heidi Alexander last September, will involve moving the airport’s emergency runway 12 metres north. Gatwick expects the project to accommodate about 100,000 additional flights a year.
The expansion gives Gatwick a major potential growth engine even as geopolitical uncertainty continues to weigh on current traffic.
Seven airlines joined the airport during the first half, including Jet2, Air France, Condor and Eurowings. Air Zimbabwe and Air Arabia have since launched services in the second half.
Gatwick’s results also showed that car-parking revenue rose 1.9 per cent to £68.6 million during the first six months, providing some insulation against weaker passenger volumes.
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