Newcastle Airport saw losses widen in 2021 as the Covid pandemic saw passenger numbers fall to a fraction of previous levels, new accounts show.
The airport has released accounts which show that passenger numbers in 2021 were just above 1m, well below the 5m seen in pre-pandemic times. And though revenues increased slightly from a year earlier to £15.1m, operating losses more than doubled to £12.9m.
Airport bosses, who say the current year has seen a “strong recovery”, did not pay any dividends to its owners: the seven North East councils and private investment group AMP Capital. It said coronavirus and the risk of new variants remained a “significant external risk” but said it was well placed to react to any new scenarios.
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Mark Hunt, chief financial officer at Newcastle International Airport said: “Over the last two years, Covid-19 has had a significant impact on the aviation industry. “However, Newcastle International Airport remained a financially robust business throughout the pandemic, and a strong asset to the region.
“Our 2021 accounts reflect a slow recovery in international travel during the year, with passenger numbers increasing month by month as travel restrictions and testing requirements were gradually relaxed.
“The airport has since experienced a very strong recovery in 2022, following the removal of all remaining restrictions. We have welcomed additional based aircraft from Jet2.com and TUI, together with a new Ryanair base, which has provided additional capacity to popular destinations as well as the introduction of a number of brand new routes for the region.
“The rapid recovery has also allowed investment in key Net Zero projects, including a solar farm and a second fully electric bus.”
In the accounts, Mr Hunt reveals that the airport had secured approval to waive loan covenant testing until the end of this year and believes it will pass those tests based on current passenger levels. But he added that if travel restrictions were to return, it was possible that covenants could be breached.
The accounts show that the airport received £929,000 in furlough payments during 2021 as well as a grant of nearly £2m from the Airport and Ground Operations Support Scheme. The airport’s average headcount fell from 333 to 277, having been 482 in 2019. The airport said its employee numbers were now back above 400.
Newcastle is not alone in the aviation sector in struggling during the pandemic. Heathrow Airport and Manchester Airports Group have both reported losses of more then £400m this year, while Doncaster Sheffield Airport is likely to close after its owners said it could not survive on current passenger levels.
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