(Reuters) – Senior Plc warned this year would be as challenging as 2020 on Monday after the British aircraft parts supplier swung to an annual loss, hit by COVID-19-related disruptions to flight travel and Boeing’s 737 MAX crisis.
The company, which supplies parts including airframes to planemakers, reported adjusted pre-tax loss of 6.2 million pounds ($8.56 million), compared with a profit of 78.5 million pounds a year ago.
The latest restrictions to combat new, highly contagious virus variants could prolong a slump in air travel, which last year forced planemakers to cut production, dragging down suppliers such as Senior.
The company had already been restructuring its business by selling non-core businesses, cutting jobs, executive pay and even sought relaxations from lenders.
“The coronavirus pandemic had a profound effect on our markets and customers and although there are some signs of stabilisation, the impact will be with us for some time to come,” said Chief Executive Officer David Squires.
Senior, which was reeling from the 737 MAX jet groundings from 2019, said it was encouraging that the MAX has now been re-certified and returned to service as production of the jet was at low level in 2020.
($1 = 0.7241 pounds)
(Reporting by Yadarisa Shabong and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)