Prestwick Airport cuts losses as revenue takes off

Prestwick Airport has shown a "major improvement" in its financial performance in the last year, according to its annual report.

Accounts filed with Companies House showed the Scottish government-owned airport cut its operating losses to £1m.

That was compared with £3m the previous year. Revenue also increased by 35%, from £18.2m to £24.6m.

Capital expenditure on operating assets also reduced year-on-year to £2.6m.

The total loss for the year, including loan interest, was £3.8m - a 50% reduction on the previous year.

The airport was taken into public ownership six years ago, after being threatened with closure following heavy losses.

In June, the Scottish government announced plans to sell the airport.

Transport Secretary Michael Matheson said last month that bids for the state-owned airport were still being considered, despite a 4 October deadline passing.

The airport's annual report stated: "Cargo growth was strong and we expect this growth to continue as we expand our business development activity in this sector and further develop discussions with other dedicated cargo carriers.

"Glasgow Prestwick continues to be a vital strategic transatlantic fuel stop location for both military and commercial aircraft.

"Year-on-year fuel sales have increased by 79% due to ongoing business development efforts and our growing reputation for providing an excellent service to these operators."

The airport is run by TS Prestwick Holdco, a private limited company wholly owned by the Scottish government.

Airport chief executive Stewart Adams welcomed the latest figures.

He said: "The turnaround of the business is continuing apace.

"The long-term strategic goal of developing all our potential revenue opportunities whilst strictly controlling our cost base is producing positive results.

"We are far from complacent but the signs are very encouraging."

A Scottish government spokesman said: "Glasgow Prestwick Airport is operated on a commercial basis and at arm's length from the Scottish government.

"These accounts show that the financial performance of the business continues to improve with revenue increasing and operating efficiencies achieved.

"Significant progress has been made since we bought the business in 2013 and it remains our intention to return it to the private sector.

"Good progress is being made with the sale process."