London City Airport (IATA: LCY) has announced that it will temporarily pause its Development Programme (CADP) at the end of this year.
Flights were suspended at the height of the COVID-19 crisis and the airport re-opened on June 21. The airport said that during that period, it worked with contractors to adapt working methods to meet new health and safety standards and made significant progress with crucial elements of the scheme.
An airport statement issued today (August 13) said that the recovery of the UK aviation market has been slower than expected with demand well below normal levels, including at London City. It predicted that passenger volumes will be well down on the record 5.1 million passengers who used the airport last year and noted that it was: “clearer that the recovery to previous levels will take longer than initially expected”.
As a result, it said that the airport “has decided to re-evaluate the timing of the next phases of the development programme, including the new terminal extension.”
Robert Sinclair, CEO of London City Airport, commented: “Given our location in the heart of London, and the resilient nature of aviation, the airport and our shareholders remain very confident about the long-term prospects of London City and the vital role we can play in re-connecting London and the British economy as we recover from the shock of COVID-19.
“For the time being, we have taken the decision to focus our attention on delivering the vital additional airfield infrastructure which will provide our existing and prospective airline customers with the potential to bring new generation aircraft to this airport in greater numbers, which will be a crucial aspect of how we build a better, more sustainable airport.
“Completing the terminal extension and new east pier very much remains part of our future, and, with the foundations for both in place, we stand ready to take those projects forward when demand returns.
“In the months ahead, we will work with airlines and government to help restore confidence to the UK aviation market and we will continue to support our local authority and our communities as they plan for life beyond the crisis.”