Trading across the Group has improved as we move towards the summer season with good visibility on summer schedules and a positive start to the year renewing key contracts. Cargo volumes continue to track behind last year.
The Group has commenced an efficiency improvement programme which is expected to reduce ongoing cost base by over £10m across central and regional operations. This programme will drive efficiencies across Menzies to ensure bottom line benefits while building on the new systems and processes under development.
Within the Americas region, the price adjustments secured during 2018 together with staff retention initiatives have delivered benefits, although staff turnover remains higher than acceptable at major ports, the company relates. Operationally, Menzies continues to win and renew key contracts in the region, most notably within the into-plane fuelling business, with recent contract renewals with Alaska Airlines at 11 airports in the US.
In EMEA, focus is on customer relationships and winning new business. The acquisition of Airline Services Limited, which received full CMA clearance in January, is being successfully integrated and new cabin cleaning contracts with British Airways at London Heathrow and easyJet at London Luton and Edinburgh have recently been acquired.
Menzies reports a strong start to the year for the Oceania region, with new business from Korean Air and Qatar in New Zealand, together with the multiple contract renewals, including Thai Airways across Australia and Air Macau in Macau.
The Board hopes to appoint a Chief Executive by early June. Giles Wilson, Interim Chief Executive Officer said: “I am pleased to report we are on track to meet our expectations. We have started the year well commercially with key contracts renewed and new contracts won and our recently launched efficiency programme is progressing well and benefits are being delivered.
“We have a strong and experienced team in place and I am confident that by continuing to deploy leading edge systems and processes that we will deliver our customers’ needs and sustainably grow our business.”
