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Loganair has returned to profitability, following a challenging period for the air transport industry.
The news comes just over a week after it was confirmed that the UK’s largest regional airline was up for sale, prompting questions over the future of Orkney’s internal and external flights.
Following assurances that the company remains “deeply committed” to the islands, Loganair has this Wednesday announced a before-tax profit of £4.98 million for the past year. Accompanied by a turnover of £161 million, this news comes after losses in each of the previous two years, as the effects of the COVID-19 pandemic struck the airline industry.
As it celebrates its 60th anniversary year, Scotland’s airline has also declared itself the UK’s third busiest airline, behind British Airways and easyJet, when measured by the number of flights operated. Despite reduced passenger volumes during the early part of the last financial year, amid COVID restrictions and related uncertainties, the airline carried more than 910,000 passengers overall, and in 2022 experienced its “busiest summer to date”.
The statutory accounts also document for the first time that Loganair has secured a new long-term, five-year contract with Royal Mail to undertake its Highlands and Islands air services, delivering to Scottish islands by day and connecting to Royal Mail’s national network each night. Four larger ATR72-500 Freighter aircraft have been introduced to replace Saab 340 Freighters for the new contract, with the older Saab aircraft being retired as part of wider fleet renewal plans.
Jonathan Hinkles, Loganair’s chief executive, said: “The efforts of every member of Loganair’s team throughout the pandemic, and the diversified nature of our business, have enabled the airline to return to profitability far sooner than many of our UK airline industry peers.
“It has, without doubt, been an incredibly tough two years. Even so, our trading results, strengthening balance sheet, and our comprehensive GreenSkies environment programme mean that we are wholly confident that Loganair is now in the strongest position of any UK regional airline to weather incoming storms affecting the wider economy.”
