Loganair returned to the black in the last financial year, producing a pre-tax profit of almost £5 million as it signalled recovery from the pandemic.
Turnover reached £161 million in the 12 months to March 31, following losses in each of the previous two years as the effects of Covid-19 struck the airline industry.
The Scottish regional airline carried more than 910,000 passengers, despite reduced volumes during the early part of the period amid Covid restrictions and related uncertainties that adversely impacting the total achieved for the full year,
However, Loganair experienced its busiest summer to date this year as the owners decided to appoint advisors to review options for the sale of the airline, which became the UK’s third busiest behind British Airways and EasyJet when measured by the number of flights operated.
The return to profitability was helped by its charter and contract operations. Contract work in support of the energy industry at Aberdeen was expanded and the carrier now counts several major football and Rugby SuperLeague teams among its client base for bespoke aircraft charter services.
Loganair, which employs more than 800 staff, also secured a new five-year contract from February with Royal Mail to undertake its Highlands & 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 340s for the new contract, with the older aircraft being retired as part of wider fleet renewal plans.
Repayments of a government-backed CLBILS loan taken out by Loganair with Virgin Money to provide financial stability during the pandemic were made across summer 2022.
Loganair said it had now repaid the remainder of the CLBILS loan – some nine months ahead of the government closure of the scheme – and has moved to a new, long-term financing agreement with Virgin Money.
The airline’s report and accounts sets out that two-year pay deals have been agreed with all of its employee groups including those represented by Balpa, Unite and Prospect.
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. 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.”
He added: “Together with the unstinting support of our staff and our owners, our relationship with Clydesdale Bank/Virgin Money has played an essential part in Loganair’s longevity and prosperity, never more so than during the Covid-19 pandemic. We’re delighted that this long-standing arrangement is set to continue.”