Austrian airline and event catering group Do & Co has reported its first annual loss as demand slumped during the coronavirus pandemic and on start-up costs related to a contract with British Airways.
Do & Co, which also operates restaurants, said that it has taken restructuring measures in response to the pandemic and decided not to propose a dividend for its 2019/20 business year.
With approximately 70% of its revenue coming from its airline business, the group said that its 2020/21 financial year will be "considerably" affected by the crisis and that it doesn't expect passenger demand to fully recover before 2023.
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It posted a net loss of €15.6 million on 10% higher revenue of €935 million for the year to the end of March.
The company is currently building a 35,000 square metre kitchen at London's Heathrow airport, from which it will provide catering and handling services on long- and short-haul flights for British Airways and other airlines from September.
However, it said that it is evaluating the closure of some of its 32 kitchens located in 12 countries, where customers include Turkish Airlines, Lufthansa's Austrian Airlines and Cathay Pacific.
Restaurant, Event Catering And Gourmet Retail Businesses
The group, which caters for soccer club Bayern Munich and operates Vienna's famous Demel cafe, said that its restauant business is picking up as coronavirus restrictions are lifted, and that there are also pleasing signs at its event catering and gourmet retail businesses.
It plans to open new food bars in the coming months and launch a service for the pre-ordering and picking up of ready meals and ingredient boxes from central locations.