Esken Ltd (LSE:ESKN, OTC:ESKNF), the owner and operator of London Southend airport (LSA), said it expects to take a hit on earnings after a global logistics partner said it will stop using the cargo operations at the regional airport from mid-September.
Esken, formerly Stobart Group Ltd, said the decision will reduce its underlying earnings (EBITDA) by £900,000, before it receives exit fees, for the remainder of this financial year and by £2.9mln for the next financial year.
The aviation and renewables group reported an adjusted EBITDA of £19.5mln in the year to end-February 2022.
Esken said it has been in talks with other logistics businesses over the last 12 months to highlight the benefits of Southend airport operation.
It noted that the airport had seen the return of passenger flying this summer and had used its spare capacity to provide an alternative for airlines struggling with airport disruptions and constraints elsewhere.
“LSA remains well positioned for the recovery and longer-term growth in commercial passenger flying,” it said in a trading statement ahead of its interim results in November.
“As volumes continue to build and more established London airports begin to face capacity constraints once again, LSA's proximity to London, strong transport links and enjoyable passenger experience support positive growth prospects.”
Elsewhere, Esken said its renewables operation had continued to perform well despite the widely reported slowdown in the construction sector and that it remains on track to achieve EBITDA in excess of £22mln in the current year.