OWNERS of Southend Airport are mulling over a sell-off after £8.6 million losses.

Esken, who own and operate London Southend Airport, has revealed its financial results for the last six months.

In an update for the six months to August 31, the aviation and renewables company said reported pre-tax losses widened to £8.6 million from £6.4 million in the same period a year earlier.

READ MORE >> How you can get £200 off your easyJet flight from Southend Airport next summer

David Shearer, executive chairman of Esken, said the recovery has been at a “slower pace than wished” and as a board will consider all options including “the best interests of all stakeholders to progress a sale or partial sale”.

He said: “Our Aviation business has continued its recovery but at a slower pace than we would have wished due to continuing disruption throughout the industry with many airlines focussing on short term performance ahead of strategic positioning.

“The medium-term case for London Southend Airport remains compelling and our refreshed airport leadership team is well placed as the market returns to normality.

“As a board we have decided to initiate an updated strategic review of our operating businesses.

“This review will consider all options for the operating businesses and may conclude that it is in the best interests of all stakeholders to progress a sale or partial sale of one or both of the Renewables or Aviation divisions to secure the long-term potential of these businesses and deliver value for Esken shareholders.”

London Southend Airport welcomed flying with easyJet to three destinations - Malaga, Faro and Palma - throughout the summer period. Flights to these destinations are now on sale for Summer 2023.

Back in September cargo operations with London Southend Airport’s global logistics partner have now ended, with an anticipated impact on EBITDA for the remainder of FY23 in the order of c.£0.9m before exit fees receivable by Esken.

The FY24 impact on Esken's Aviation business is expected to be a c.£2.9m reduction in EBITDA, prior to any additional cost savings or new cargo agreements.

However, this week, the division signed a contract with a new logistics partner, to support them on a temporary basis from 8th January through to 25th March 2023.

Following the financial struggled, Esken also announced it has secured a new lending facility, comprising £50 million of committed funding and £40 million uncommitted funding.

David Shearer added: “I am pleased that we have been able to conclude our debt financing, encompassing £50m of committed funds, with £40m uncommitted, despite challenging market conditions.

“Upon shareholder approval of an increase in our borrowing limits, the £50m of committed funds will bring stability and allows us to clear our residual legacy liabilities.”