StockMarketWire.com - Aviation services group John Menzies said it expected to report a 37% drop in annual revenue after the pandemic hurt the airline sector.

Revenue for the second half was similar to that reported for the first half, with the overall fall for the year in line with expectations, the company said.

John Menzies added that it had generated an underlying operating profit in the second half, as expected, driven by increased volume, government support programs and cost cutting.

'In the second half, activity levels showed an encouraging recovery through the third quarter, after the very severe reduction in the second quarter,' John Menzies said.

'Towards the end of the period activity levels declined as a result of normal seasonal factors, as well as the impact of further Covid-19 travel restrictions.'

Ground and fuelling service volumes ended the year 50% below the prior year, while revenues from air cargo services were more resilient with volumes down around 20% and strengthened by higher yields.

'We continue to believe market conditions will remain challenging through the early part of 2021, and this is reflected in the group's operational and financial assumptions,' the company said.

'While there has recently been some renewed Covid-19 related disruption, the positive developments with regard to the roll out of vaccination programmes are encouraging and support assumptions of a gradual recovery in volumes from the second quarter of 2021.'




Story provided by StockMarketWire.com