Menzies wins new business despite losses

In an update to investors, Menzies Aviation said trading had remained tough due to the ongoing impact of the pandemic on global air travel. However, the firm said it was now re-staring operations and seeing a partial return of flight schedules.

Cargo volumes continue to be more resilient, it added, while its cargo brokerage business is trading ahead of expectations given the current lack of available capacity.

In a statement the firm said: “As a result of the very challenging conditions experienced by the industry, revenue to the half year was down approximately 33 percent, in constant currency, on the prior year.

“The revenue decline has had a significant impact on profitability and will lead to the group being loss making in the first half, although the extent of this has been limited by the speed and effectiveness of our cost management actions.

“In the second half, profitability will benefit from a more significant contribution by various government support programmes and continuing tight cost management.”

The firm said that despite the crisis, it had made “very encouraging commercial progress winning significant new business”.In the first six months, the group added some £27 million of net annualised revenue from commercial activities.

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