Loganair returns a profit after 'two tough years'

Scottish airline Loganair has reported a return to profitability following two years of losses.

The Glasgow-based company said it made a £4.98m profit before tax in the financial year to 31 March, with a turnover of £161m.

It said the Covid pandemic hit its finances in the previous two years.

Loganair is the UK's largest regional airline and its services include a number of lifeline routes backed by public funding.

But it said subsidies from these Public Service Obligation (PSO) routes accounted for less than 5% of its turnover.

The company, which was put up for sale earlier this month, said its charter and contract operations had played a part in its return to profitability.

This included expanding a contract in support of the energy industry at Aberdeen, while the airline also secured work to provide charter services for several major football and Rugby SuperLeague teams.

Earlier this year, Loganair also started work on a five-year contract providing Royal Mail's Highlands and Islands air services.

Chief executive Jonathan Hinkles 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."

The airline, which was founded 60 years ago, operates up to 1,000 flights a week and serves 33 UK airports.

In the past year, it carried more than 910,000 passengers and in 2022 experienced its busiest summer to date.

The airline operates a number of routes deemed not to be commercially viable and receives subsidies to operate these under five separate PSO arrangements.

The routes are Derry to London Stansted, Dundee to London City, Benbecula to Stornoway and Orkney's inter-isles air services as well as Glasgow to Barra, Campbeltown and Tiree.

The Scottish PSOs are supported by the Scottish government or local authorities.

Earlier this month, Loganair confirmed that advisers had been appointed to find a buyer for the business.

Brothers Stephen and Peter Bond have been sole owners of the company since 2012.

Previous to that, they had partly owned it for 15 years.