London City Airport has received a cash injection of £130 million from its owners, as it struggles to recover from the pandemic.
Business Matters magazine reports the capital has been provided by a consortium of Canadian pension funds and a Kuwaiti investor. The funds will be used to ‘cut debt, pay interest, and strengthen cash reserves, giving the airport breathing space as it prepares for refinancing talks on over £700m of loans due in March 2026’.
Business Matters said London City is struggling to recover from the pandemic, with passenger numbers still below pre-COVID levels. In 2023, it recorded 3.4 million passengers, down from 5.1m in 2019. This year, it expects passenger numbers to rise to 4m.
It said London City has also been hampered by the Government’s decision to block the expansion of weekend services, despite raising the annual passenger cap from 6.5m to 9m.
A spokesperson for the airport said: “Since the pandemic, we have seen year-on-year passenger growth, with leisure travel now representing closer to 60% of the passengers through our airport. London City is a profitable company with supportive, long-term shareholders.”
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Business Matters magazine reports the capital has been provided by a consortium of Canadian pension funds and a Kuwaiti investor. The funds will be used to ‘cut debt, pay interest, and strengthen cash reserves, giving the airport breathing space as it prepares for refinancing talks on over £700m of loans due in March 2026’.
Business Matters said London City is struggling to recover from the pandemic, with passenger numbers still below pre-COVID levels. In 2023, it recorded 3.4 million passengers, down from 5.1m in 2019. This year, it expects passenger numbers to rise to 4m.
It said London City has also been hampered by the Government’s decision to block the expansion of weekend services, despite raising the annual passenger cap from 6.5m to 9m.
A spokesperson for the airport said: “Since the pandemic, we have seen year-on-year passenger growth, with leisure travel now representing closer to 60% of the passengers through our airport. London City is a profitable company with supportive, long-term shareholders.”
The post London City Airport secures £130m investment appeared first on Travel Gossip.
Continue reading...
