London City Airport (LCY) continued its gradual post-pandemic recovery in 2023, recording a profit for the first time since 2019, but cautioning that the improvement trend is likely to slow this year.
The airport recorded 3.4 million passengers in 2023, a 14% increase in 2022, but still well short of the 2019 pre-pandemic figure on 5.1 million.
In figures lodged with Companies House in London, the airport said that it moved back into the black in 2023, recording a net profit of £4.2 million ($5.5 million), compared to a net loss of £3.3 million in 2022.
LCY is notable for having around 90% of its flight movements performed by small narrowbody jets, the Airbus A220 and Embraer E-Jet families.
The airport, located in London’s Docklands to the east of the city center, has traditionally drawn much of its passenger throughput from the adjacent Canary Wharf financial district. However, several financial institutions there have downsized since the pandemic.
In the report accompanying the figures, the airport noted that LCCs and leisure travel had largely fuelled the post-pandemic rebound whereas flag-carriers such as those operating into LCY “have tended to consolidate and strengthen existing schedules rather than adding capacity or new destinations.”
Other factors, such as changed travel behavior patterns brought about by the increased amount of hybrid working among companies and restricted travel budgets with less late booking – whose premium fares made them particularly valuable to airlines – plus more considered booking and travel patterns among executives, had cut into LCY’s figures.
Some years ago, well over 70% of the airport’s passengers flew on business. That figure had been slipping even before the pandemic, with more short-haul leisure travel being recorded. LCY and the airlines that serve it are focusing on growing the leisure/VFR market: in 2023, passenger figures were 44% business and 56% leisure/VFR.
“There has also been increased short-haul capacity at London Heathrow making use of slots as long-haul routes recover, which has also had an impact on London City,” the report noted.
Ongoing engine problems in the Airbus A220 and Embraer E2 models, which make up a significant percentage of movements at London City, together with the increasing cost of operation, are also continuing to affect both existing and prospective airlines using the airport.
Bearing this in mind, the airport said it had softened its projections for the current year.
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