John Menzies swings to FY loss as Covid batters air industry
Aviation services group John Menzies swung to a full-year loss as the Covid-19 pandemic battered the travel industry last year.
The company on Tuesday said pre-tax losses for the year to December 31 came in £120.5m compared to a £17.3m profit a year earlier. It warned that it did not anticipate a return to the volumes witnessed in 2019 before full year 2023.
Revenue tumbled 37% to £824.2m on a constant currency basis, with decrease in flight activity leading to a 49% year on year reduction in flight volumes in ground handling and fuel services. No dividend was declared.
“Continued tight control on costs and ongoing support from global government schemes have enabled us to maintain our operational capability as well as a strong liquidity position,” Menzies said in a statement.
“As the market recovers and we exit the pandemic, we are ready to scale up our operations to meet the demands of our customers.'
“As the markets recover, our restructured cost base and reshaped business portfolio should enable the group to generate structurally improved operating margins from growth in revenues.”