Southampton Airport forecasts passenger numbers will fall by half

Collapsed airline firm Flybe accounted for up to 90% of Southampton Airport's business

Passenger numbers at Southampton Airport will be half what was forecast for 2020 because of the collapse of Flybe, staff have been told.

In a letter to employees, the airport's chief executive said there would be "significant restructuring".

Flybe, which went into administration last week, previously represented up to 90% of its business, carrying almost two million passengers a year.

The airport is assessing its "future shape" but has not revealed details.

Flybe's routes to Newcastle and Manchester have been taken over by Eastern Airways and Loganair will fly to Aberdeen, Edinburgh and Newcastle.

Neil Garwood, Southampton Airport's boss, told staff the organisation would have to 'restructure'

But in a letter to staff, published by the Southern Daily Echo, airport chief executive Neil Garwood, said the demise of Flybe, combined with falling demand during the Coronavirus outbreak, had caused "serious problems".

"Whilst we have some welcome news of backfill coming through, this will unfortunately not be sufficient to prevent significant restructuring across every organisation involved with the airport, he said.

"Our passenger numbers, including the backfill we have secured so far, are now around half what they were forecast to be for 2020; and, crucially for our profitability, in the current market airlines are in a position to pay us far less to operate than we've seen historically."

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An airport spokeswoman said it would be "completely inappropriate" to discuss potential job cuts.

"Following the loss of Flybe, we are looking at the future shape of the organisation, ensuring that we have the right staff in the right places," she said.

Flybe accounts for a large proportion of flights from many regional airports

The airport is continuing with its plans to extend the runway by 164m (538ft) to allow for larger 190-seater aircraft, used by the likes of EasyJet and Ryanair, allowing it to offer a wider route network.

These proposals have so far been opposed by local councils, including Southampton and Winchester, as well as environmentalists.

Analysis: Paul Clifton, BBC South transport correspondent

The airport feels empty - Flybe's collapse has stripped it of more than 90% of its business.

Outside, Flybe's aircraft stand idle, inside, a coffee shop has already closed - cuts to staffing are visibly biting.

In his letter Neil Garwood says "the world has changed completely for us", with airlines now in a position to pay far less to fly from Southampton.

Decisions about job numbers are being taken - for anyone working with airlines and aviation, there are difficult days ahead.