Gama Aviation H2 trading 'stable' despite ongoing losses at CASL

Aviation services provider Gama Aviation said it had continued to feel ongoing losses at its Hong Kong-based associate in 2020 but stated second-half trading had remained stable across the group as a whole.

Gama Aviation said its underlying performance, excluding its share of losses from China Aircraft Services Limited, was stable during the second half of the year and included the residual benefits from government support programmes.

The AIM-listed group said its operational performance also partially recovered in the second half of the year, after having experienced "the significant impact" of Covid-19 on the aviation sector and the business.

In the firm's ground division there was "a positive trend" from second quarter lows, while in the Air division, the company's global fleet continued to increase in the second half of the year.

While Gama Aviation highlighted that it had continued to be "adversely impacted" by ongoing losses at CASL, the group did note it had been hurt less in the tail end of 2020 than it had in the first half of the year.

As of 1015 GMT, Gama shares were down 5.04% at 37.98p.