DALLAS – The UK’s largest regional airline Loganair (LM), has announced that it has returned to profitability for the financial year to March 31, 2022.
LM generated a full-year pre-tax profit of £4.98m (US$5.6m). This is in comparison to the £5.6m (US$6.2m) pre-tax loss for the previous year. It made revenues of £161 million (US$180 million) and carried over 910,000 passengers.
The airline also said that it had repaid government loans over the summer, made to LM to provide financial support during the pandemic.
A Diverse Operation
Part of the return to profitability was down to its charter and contract operations, including supporting the energy industry from its Aberdeen (ABZ) base. In February, LM confirmed that it had secured a five-year contract with Royal Mail to provide postal transport to the Scottish Islands and across the UK. Four ATR-42 freighters have been brought in to replace the Saab 340s that previously flew the route.
LM also operates several Public Service Obligation (PSO) routes, although it added that subsidies from these account for less than 5% of its revenues.
“Tough Two Years”
Speaking of results, CEO 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 means 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.”
The airline recently announced that it had appointed advisers to find a buyer for the 60-year-old carrier. Brothers Peter and Stephen Bond have owned LM since 2012.
Featured Image: LM operates a fleet of 13 ERJ-145s. Photo: Alberto Cucini/Airways