Gatwick Airport borrows extra £75m from government due to pandemic
Gatwick Airport has borrowed an extra £75m from the government to bolster its finances due to the ongoing impact of the pandemic on the travel sector.
The airport has reportedly borrowed £250m so far under the Covid Corporate Financing Scheme, after being forced to keep applying for new funds due to lockdowns and restrictions on international travel.
Gatwick, which first applied for loans as a contingency measure in August, has 12 months to repay the money.
It is also able to draw down a further £50m under its £300m facility.
A Gatwick spokesperson said the airport borrowed the money “to preserve liquidity and protect the business while there is ongoing uncertainty regarding the length of time’ of the current air travel restrictions.”
“This loan gives the business some flexibility in case the state of affairs regarding international travel deteriorates further,” the spokesperson told the Mail on Sunday.
Gatwick cut 600 jobs in August as part of a major restructuring caused by the Covid crisis, accounting for 24 per cent of its workforce.
Passenger numbers during August were more than 80 per cent down compared to the previous year, demonstrating the devastating impact of the coronavirus pandemic on the sector.