Airports - how much are they losing per year?

[Beafer]

With the current Covid situation, and airlines cutting jobs, how much money are airports losing each year?

Teesside was reported to be losing £2m per year, which was before covid.

How long can airports survive with the lack of passengers?

[LTNman]

Luton Borough Council is have to bail out its airport by £50m this year and they are not even the airport operator but just the landlord.

[The Hypnoboon]

Prior to Covid, Prestwick was losing money on the passenger side but in the previous financial year made £3 million profit mainly due to cargo and military flights.

[racedo]

Ultimately local authority owned airports will have to be disposed of. There is no justification for council taxpayers money to be continually pumped into what will be in effect bottomless pits for the next couple of years. This will be at a time when council services v receipts will have a big hole. As high streets become devoid of retail stores and business dies as it does in a recession then there will be a lot less cash.

I would suggest total losses of Airports in 2020 probably close to £2 billion potentially higher. The issue is that no airport will be in a position to service their debt, potentially ownership may forcefully be changed as debt holders take control but what do you do in taking control of an airport when nobody is travelling.

[GROUNDHOG]

Ultimately local authority owned airports will have to be disposed of. There is no justification for council taxpayers money to be continually pumped into what will be in effect bottomless pits for the next couple of years. This will be at a time when council services v receipts will have a big hole. As high streets become devoid of retail stores and business dies as it does in a recession then there will be a lot less cash.

I would suggest total losses of Airports in 2020 probably close to £2 billion potentially higher. The issue is that no airport will be in a position to service their debt, potentially ownership may forcefully be changed as debt holders take control but what do you do in taking control of an airport when nobody is travelling.

Yes and no
There are a lot of airports/airfields that do very well from building and land rental to other businesses in many cases non aviation related.
Our local airport Newquay is an excellent example of somewhere that could never sustain a business on passenger flights alone but is expanding other areas to subsidise its existence quite well. The proposed spaceport if it happens will be a big step forward.

[southside bobby]

Cornwall Council last week voted to move £5.6m from Spaceport funding to Cornwall Airport...."to keep the airport going".

[ScottishAviator]

Prior to Covid, Prestwick was losing money on the passenger side but in the previous financial year made £3 million profit mainly due to cargo and military flights.
Not £3m Profit but £3m Underlying Operating Profit ie before asset impairment, non-recurring income/expenditure and interest - the company has not paid any interest on the 'commercial' loan funding from Scottish Ministers since being taken into public hands

Why was this 'non standard' announcement made in August? Suffice to say, there has been a significant reduction in US military flights since March

[LTNman]

Ultimately local authority owned airports will have to be disposed of. There is no justification for council taxpayers money to be continually pumped into what will be in effect bottomless pits for the next couple of years. This will be at a time when council services v receipts will have a big hole. As high streets become devoid of retail stores and business dies as it does in a recession then there will be a lot less cash.

I would suggest total losses of Airports in 2020 probably close to £2 billion potentially higher. The issue is that no airport will be in a position to service their debt, potentially ownership may forcefully be changed as debt holders take control but what do you do in taking control of an airport when nobody is travelling.

Come to Luton and see how not to own an airport. Money lent to airport is around £400m. Money to be lent this year will be £60m to stop bankruptcy. Every other budget at the Council has been savaged due to its airport.

[Asturias56]

Well you just add a line in the accounts for "development potential" - think how much LHR is worth for housing......................

[SWBKCB]

Why is it always housing - last one was Croydon in '59? Others have gone for industrial or just languished?

[southside bobby]

Possibly that`s it...a euphemism with the same end result!

"No1 Control Tower Way" does have has a certain way about it though as an address perhaps.

[southside bobby]

Gatwick Airport has agreed with its lenders to temporarily waive its financial covenants.

[GROUNDHOG]

Cornwall Council last week voted to move £5.6m from Spaceport funding to Cornwall Airport...."to keep the airport going".
No great shock there, the spaceport project is for the future, the current need is, well, current so hence the decision.
The point is NQY has for many years been like a bucket with a big hole except in recent times at least decent attempts have been made and with some success to plug it up.

[racedo]

Gatwick Airport has agreed with its lenders to temporarily waive its financial covenants.

They have zero options in truth because what else could they do. Implications for pensions funds are immense as what were seen as safe assets for a decent return in either dividends / capital growth have evaporated. I believe the retirement options for millions of people have changed because of this over the next 5-10 years.