Pandemic recovery is 'ahead of schedule' says Luton Rising after latest company accounts published

Doing nothing to protect Luton Borough Council’s airport company during the pandemic “would have been truly irresponsible”, according to its chairman.

Abandoning London Luton Airport Limit, trading as Luton Rising, would have been failing local communities, said Labour Farley councillor Javeria Hussain.

“I want to reassure everyone that our airport company is absolutely stable. Recovery from the pandemic is ahead of schedule and the future is optimistic.

“We continue to remain focused on making a positive social impact and improving lives across our town through investing in our local communities.”

Councillor Hussain, who chairs Luton Rising, was reacting to the publication of the company’s accounts for 2021/22 which have been listed with Companies House.

“The accounts cover a period when we were in a global pandemic which catastrophically impacted aviation,” she explained.

“People will remember that flights were grounded and one of our major sources of income was taken away.

“Revenues are already on track to return to pre-pandemic levels. The headline loss figure of £232m for 2021/22 is mostly a year-on-year adjustment to the airport valuation.

“This is a complex calculation involving many subjective assumptions about future operating conditions. Our board commissioned experts at one of the ‘top four’ accounting firms to prepare the valuation and is entitled to rely on its expertise.

“While there’s a difference in opinion on the exact figure, we must remember that the valuation of London Luton Airport has increased from £530m to about £1.3bn.

“That’s the result of the work we’ve done to stabilise and protect our community asset during and immediately following Covid-19.

“The ‘loss’ also includes an amount of deferred taxation, another non-cash item affecting the balance sheet, which is required by accounting rules to be passed through the profit and loss account.

“The actual operating loss for 2021/22 was £15m compared to £20m the previous year,” she added.

“This was hardly surprising given that the company’s revenues were severely depressed while the aviation industry was slowly recovering, as Covid restrictions were lifted and consumer confidence in international travel returned.

“These losses were covered by the company’s accumulated reserves. When our airport had virtually no passengers and no income in 2020 and 2021, we had to acknowledge that it was temporarily stricken.

“Doing nothing would have been truly irresponsible, and we would have failed the local communities of Luton to whom our airport ultimately belongs.

“Instead we decided to invest to start earning again as soon as possible, which is what a responsible owner does. We knew we’d have to take out a loan, but that we could repay it. The annual accounts reflect this decision.

“Our ownership of London Luton Airport has provided £0.5bn of benefit to Luton during the last 25 years.

“Front line services, charities which support our most vulnerable people, the Arts and culture, sport and physical activity, plus a multitude of community celebrations in Luton all depend on our airport’s success.

“We’re not giving up just because the going got tough,” she warned. “We won’t be swayed by people talking our community airport down and suggesting it’s failing, while seemingly oblivious to the benefits it brings.”