Cardiff Airport, owned by the Welsh government, has reported losses of £4.5m for the year ending March 2023, despite receiving a government grant of £5.3m. The airport has struggled to attract passengers back to pre-pandemic levels, with only 910,000 passengers using the airport in the same period, representing only 58% of the figures from the last reported pre-pandemic year. However, the company is hoping to attract more income by making more use of its land to increase revenue and reduce its dependence on passenger activities for revenue.
The airport uses EBITDA to report on its financial performance, which records earnings before tax, interest and other items. Using this measure, the airport reported underlying losses of £2.1m compared to the previous year, with a £7.9m grant. The airport is currently being supported by a Welsh government grant worth £42.6m over four years, and has received millions in government loans over the years.
Cardiff Airport is hoping to increase its income by making more use of its runway and land, following a decline in passenger numbers, which has led to a decline in revenue. The decision by Wizz Air to close its operations in early 2023 has reinforced the need to reduce dependence on passenger activities. The airport is in commercial negotiation with Qatar Airways, which was due to recommence flying from the airport by the end of last year but is yet to return.
Welsh Conservatives have criticized Labor’s Transport Minister for the airport’s decline, stating that the diversification of the airport has to be a priority. They have also predicted that the airport’s losses will only grow if this situation continues. Conversely, a Welsh government spokesperson said that the airport generates over £240m GVA to the Welsh economy annually, and the executive team is working to restore flights and diversify the business as part of its recovery from the pandemic. Commercial discussions remain ongoing between Cardiff Airport and Qatar Airways regarding the resumption of the Qatar Airways Doha service from Cardiff
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