Heathrow hit by £2bn loss as airport calls for more Covid support
February 24, 2021, 12:06 pm

Heathrow hit by £2bn loss as airport calls for more Covid support

Heathrow airport wants the UK government to provide more support to the aviation sector in the March budget.

Passenger numbers slumped to 22.1m in 2020, the smallest annual total since 1975

Heathrow airport plunged to an annual £2bn loss in 2020 as the pandemic closed borders and the government restricted most international travel, underlining the impact of Covid-19 on aviation.

Britain’s largest airport said the number of passengers who passed through slumped to 22.1 million last year, more than half of whom travelled in January and February, a fall of 73% compared with a year earlier and the smallest annual total since 1975.

Cargo volumes also fell by 28% during 2020, although some dedicated cargo flights helped the airport to offset some of the lost passenger travel.

However, Heathrow’s chief executive, John Holland-Kaye, said he thought it was “very likely” that people would be able to go on summer holidays, following the prime minister’s plan to allow international travel to resume from 17 May, as part of the government’s roadmap out of lockdown.

“For the aviation sector we can start to plan ahead for 17 May to make sure we’ve got the people and the planes in place so that we can not just get people on their holidays but also get British businesses moving again,” Holland-Kaye told BBC Radio 4’s Today programme.

Heathrow said it had acted quickly last year as coronavirus surged to cut its operating costs by slashing pay, closing one runway and two terminals, and raising money but warned that airports had very high fixed costs.

Heathrow complained that government policies had effectively closed borders but that it had received no government support other than furlough. It said it had not benefited from business rates relief, unlike other airports, as well as retail, hospitality and leisure businesses.

The airport is calling on the UK government to provide more support to the aviation sector in the March budget and is requesting 100% business rates relief, a further extension of the furlough scheme and a reversal of the tourist tax.

The company has warned that Britain’s economic recovery will be held back until long-haul passenger flights can restart, including to key markets such as the US.

Airlines and travel companies reported a surge in holiday bookings on Tuesday, after Boris Johnson’s announcement about England’s roadmap for the easing of coronavirus restrictions.

Companies including EasyJet, Ryanair, Tui and Thomas Cook said there had been a jump in bookings to destinations including Spain and Greece after the prime minister’s announcement, although this remains subject to review. The green light for international travel is also dependent on the continued success of the vaccination programme and no resurgence in coronavirus cases.

source: Joanna Partridge

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.