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(Alliance News) - Esken Ltd on Thursday said it has delayed the restart of commercial passenger services from London Southend Airport to Spring 2022 as it looks to save cash.
The Isle of Man-based company, formerly known as Stobart Group, has two core assets: Southend Airport and biomass fuel provider Stobart Energy.
Shares were down 1.2% to 14.68 pence in London on Thursday midday.
The only passenger airline operating at Southend is Ryanair Holdings PLC, which announced last month it would end its limited service on November 1. It was the latest blow for the airport, after easyJet PLC pulled out last year. Wizz Air Holdings PLC operates one route to and from Southend, but it's currently suspended.
Esken said last month that it was in talks with a range of airlines, targeting a return of passenger flights ahead of the peak summer season in 2022.
On Wednesday, Esken confirmed the suspension of passenger services, saying "the decision taken alongside our airline partners to delay the restart of commercial passenger operations to Spring 2022 will further allow [Southend] to minimise operating expenditure and maintain tight cost control," as demand continues to be hit by the pandemic.
Talks with airlines over a return to passenger services are ongoing and management is confident, Esken added.
Southend still has GBP19.7 million cash ring-fenced after a deal with Carlyle Group, in which the private equity firm could eventually get a 30% stake in the airport.
The lack of income from passenger services was partially offset by cargo flights, Esken added.
Meanwhile, Esken's energy business is trading in line with expectations and returned to pre-Covid levels of profitability and cash generation in the first half of the 2022 financial year, which ends February 28.
By Ivan Edwards; ivanedwards@alliancenews.com
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