Gama results show partial recovery post-pandemic

Gama Aviation’s financial results for the year ending December 31st show the company’s performance remained stable during the second half of 2020. Operational activity partially recovered too, after suffering the impact of the Covid-19 pandemic. The stability excludes Gama’s share of losses from its associate China Aircraft Services Limited (CASL).

In the Ground division there was a positive trend quarter-on-quarter from the second quarter lows. Third quarter- and fourth-quarter engineering hours were 74% and 80% respectively of those achieved in the equivalent periods in 2019. Whilst in the Air division, the global fleet continued to increase in the second half of the year.

Gama’s major “special mission” contracts met expected service levels. These included the Helicopter Emergency Medical Services for the Scottish Ambulance Service and the fixed wing air ambulance services for the governments of both Guernsey and Jersey.

Gama has continued to be impacted by the ongoing losses at its Hong Kong based associate, CASL, albeit by less than in the first half of 2020. This reflects the impact t of the pandemic on the commercial airline market, which CASL services.

Gama continues to manage and closely monitor cash. On December 31st 2020, it held cash balances totalling $16.1m in addition to having $24.7m of undrawn funds remaining on its $50m revolving credit facility. Since the year end Gama has acquired Jet East Aviation Corporation, for a reported initial $7.7m and has repaid $2.6m of Jet East’s debt that was taken on as part of the acquisition.

Gama intends to release its audited results for the year ending December 31st 2020 by the end of April.