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Stobart clears runway for major importing deal at London Southend Airport

The aviation group has signed an initial two-year freight agreement with a “global logistics customer” at Southend Airport

Stobart Group Ltd -

Stobart Group Limited (LON:STOB) will convert part of London Southend Airport to accommodate a new freight customer that local newspapers have speculated is online retail giant Amazon.

The aviation group has signed an initial two-year freight agreement with a “global logistics customer” at Southend Airport.

Essex-based papers have noted that retail giant Amazon has recently ramped up hiring at its warehouse in Tilbury and have suggested it could be Stobart’s new partner. 

Under the terms of the agreement, which begins in October, Stobart will convert the hangars on the north side of the runway for freight, keeping the south side for passenger flights.

Warwick Brady, chief executive, said the agreement will let the group “further diversify and add a new revenue stream”, which is “expected to contribute towards Stobart Group's underlying EBITDA from FY2020 onwards".

In September, Stobart reported that passenger numbers at Southend rose 42% in the first half of the year, with commercial partner WizzAir flying to three new destinations in October.

Shares were down 1% in Wednesday afternoon trading, at 121p.

Quick facts: Stobart Group Ltd

Price: 58.8 GBX

LSE:STOB
Market: LSE
Market Cap: £220.3 m
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