Airport services firm John Menzies reveals profit warning
Airport services and support business John Menzies has revealed profits will land below expectations, sending shares down 17% in early trading.
The shock profit warning came as bosses said trading across the business has been “disappointing”, driven by fewer customers sending cargo and a cut in flights.
John Menzies operates many of the behind-the-scenes parts of airports, including air-side assistance and the refuelling of planes.
Chief executive Giles Wilson said: “The overall aviation market is having a difficult year. This inevitably is having an impact on our full-year out-turn.
“However, I firmly believe in the structural growth dynamics within our industry and all historical data points to recovery.”
He added that plans to cut costs by £10 million by next year are on track, with “a revitalisation of our commercial offering and a greater focus on returns from the deployment of our systems”.
The wider airline and holiday industry is already suffering, with travel firms particularly struggling.
Holidaymakers have been putting plans on hold, with the original Brexit deadline in March said to have caused the uncertainty.
Menzies, which traces its roots back to a bookshop founded in 1833, in May appointed Swiss private equity fund manager Christian Kappelhoff-Wulff to its board and formed two new committees to consider strategic and structural options.