Loganair battles headwinds to connect Scots communities with plusher, quieter planes

Loganair, the regional airline connecting some of Scotland’s remotest communities, is eyeing calmer skies following a turbulent year that saw its profits tumble 40 per cent despite record turnover.

Chief executive Luke Farajallah said the Glasgow-based carrier had battled a number of headwinds while transitioning its fleet from older Saab aircraft to newer ATR turbo-prop designs. However, he told The Scotsman that he was “more confident now than I have been for some time” that there would be an improvement in the financial results for the current year.

“We had a year of finishing the transition of the fleet,” he said. “That has been a highly complex task. But 2024 looks significantly more stable from an operational point of view with 25 per cent fewer cancellations this year. We had to modernise the fleet and the larger ATR aircraft offer seat numbers that vary from the late 40s to the mid 70s.”

Glasgow-headquartered regional carrier Loganair has been introducing a fleet of ATR aircraft.

The airline, which flies 36 aircraft across more than 60 routes, posted a profit before tax of just over £6.9 million for the financial year that commenced April 1, 2023 and ended March 31, 2024. That was down from about £11.2m the year before and came despite overall turnover climbing to a record £264.1m, up 6 per cent on the previous 12-month period.

In the year to March 2024, the airline carried more than 1.5 million scheduled passengers, as well as operating charter services for the oil and gas industry, and delivering on its multi-year contract with the Royal Mail. Loganair also operates Orkney’s inter-island service, which famously includes the world’s shortest scheduled flight between Westray and Papa Westray, lasting less than two minutes.

Farajallah described the service as a “unique feature”, which has become a YouTube phenomenon in recent years. “We are flying teachers, pupils, doctors, nurses. We are keeping communities going with these planes,” he added.

The airline said the larger ATR aircraft used on other routes offered passengers a more comfortable experience including a quieter cabin, more spacious overhead lockers for luggage and increased number of seats, allowing it to “continue to stimulate more tourism into the islands and across Scotland”.

Luke Farajallah, CEO, Loganair. Picture: Steve Welsh

The accounts also show that the group’s headcount increased to 899 from 867 over the course of the year under review, as the firm took on extra cabin crew, engineers and administration workers.

Farajallah pointed to supply-chain problems, operational disruption and inflationary pressures over the past year and said changes to employers’ national insurance contributions announced in October’s UK Budget would cost the airline some £500,000. He said the NI hike could force the business to “think twice” about bringing in more staff.

“Aviation is a growth enabler and particularly Loganair which is connecting life-line communities,” added Farajallah. “We are entering a new growth phase and anticipate adding two to three aircraft each year for the next five years. We can only really do it because we now have a more stable operation. I am confident that future financial performance will reflect the various changes and interventions being made.”

The cutting-edge aircraft in which Loganair hopes to fly Orkney and Shetland passengers by 2028