Loganair posts £1 million profit in first full year under rebrand
Friday, 2nd August 2019: -
Loganair reported a pre-tax profit of £1.01 million for the 12 months ended 31 March - its first full year of operation under its own Scottish brand.
There was record turnover of £119.85 million, up 8.3% on the previous year's figure of £110.65 million for the company now proudly badged as Scotland's Airline.
The pre-tax profit is reported after non-recurring costs of £3.07 million related to the introduction of Embraer jet aircraft to the fleet and the associated significant expansion of Loganair’s fleet to 43 aircraft during the first quarter of this year.
With this expansion, Loganair has now become the UK’s fifth largest airline measured by number of flights operated.
It is a welcome return to the black after the previous year's loss, which reflected the cost of creating an airline from scratch due to the break-up of Loganair’s franchise agreement with Flybe and damaging and unsustainable competition on key routes from its previous partner.
In February 2019, fellow UK regional airline bmi Regional ceased trading, and Loganair's operation immediately grew in scope by recruiting 140 of its pilots, cabin crew and engineers - as well as expanding the fleet by acquiring many of its Embraer jet aircraft. The increased range of the jet aircraft has facilitated growth further afield for Loganair, with new services from Scotland to Germany, Norway and Denmark and from Newcastle to Belgium and Norway being launched in recent months.
Operating from its Glasgow Airport headquarters and with 10 further operating bases in Scotland and England, Loganair now has 840 staff - its largest-ever complement. Statutory reports indicate that Loganair has the strongest gender pay performance of any UK airline and continues to have the highest proportion of female pilots in the UK.
Managing director Jonathan Hinkles said: "We have every reason to be proud of our achievements in the last year, growing our routes in the UK and Europe, expanding staff numbers and expanding our fleet. In addition to new scheduled routes during the year, we also won a new contract to provide services for British Airways’ CityFlyer subsidiary, took over the operation of a corporate shuttle service for a major aircraft manufacturer linking its production sites and won a competitive tender to provide essential air services between the City of Derry and London.”
Hinkles sounded notes of caution on three challenges affecting the aviation industry - the advent of aggressive no-win no-fee agencies who are trying to extend eligibility of EU261 customer compensation claims for flight delays and cancellations to those affected by adverse weather; the five-fold rise in cost of EU Emissions Trading Carbon Permits – effectively a tax on aviation fuel which adds over £1m to Loganair customers’ ticket prices each year on top of the highest air travel tax in Europe (Air Passenger Duty); and an industry-wide shortage of pilots.
The airline has pressed forward with expansion plans in the early part of the new financial year, launching new services to London Southend Airport from Aberdeen, Glasgow and Stornoway and the first commercial air services from Carlisle Lake District Airport in over 25 years.