Gatwick stays grounded in the red despite increase in passengers

 

Gatwick airport posted a £29.1 million loss today, despite new routes to Beijing and Istanbul boosting the number of passengers in its arrivals and departure lounges in the year to April.

However Gatwick's dive into the red was lower than the £45.7 million loss seen a year earlier, and the world's busiest single-runway airport claimed it was due to heavy investment.

The airport - owned by Global Infrastructure Partners, an investment fund set up by Credit Suisse and General Electric, the Abu Dhabi Investment Authority and Korean and Canadian pensioners - spent £226.7 million in the year. Most of the cash went on resurfacing the runways and taxiways, and building new shops and restaurants in the North Terminal, including Jamie's Italian.

Gatwick added that it had spent nearly £1 billion over the last five years; it is part of the airport's bid to attract 37 million passengers through its terminals each year by 2020.

That would mean luring almost 10 per cent more travellers over the next seven years - in the 12 months to April, the airport's passenger traffic inched up 1.2 per cent to 34.2 million.

Chief executive Stewart Wingate said that growth had stemmed from new routes to emerging markets including China, Indonesia and Turkey, and expansion from existing carriers, such as easyJet launching flights to Moscow, and more flights to Vietnam from Vietnam Airlines.

But Gatwick's long-haul market actually fell - down 1.4 per cent, or 100,000 passengers - as Delta Airlines axed its London to Atlanta service, and Thomas Cook dumped its route to Vancouver.

Some airlines also moved out of Gatwick, with Adria Airways moving to Luton, Air Moldova moving operations to Stansted, and Ryanair withdrawing all non-Irish routes.

Gatwick is now bidding to make more money from its flights, today telling the industry regulator, the Civil Aviation Authority, it wants its take-off and landing charges to rise 1.5 per cent a year in real terms during each of the seven years from 2014. It had asked for a 4 per cent rise, but that was rejected by the CAA.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Client Services Assistant

£18000 - £20000 per annum: Recruitment Genius: A Client Services Assistant is ...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor