Regional airline Loganair ascends back into profitability and rebuffs potential impact of economic turbulence

Loganair has cheered its return to profitability after losses resulting from the effects of the Covid-19 pandemic – and believes it is the best-placed UK regional airline to weather incoming economic turbulence.

The Glasgow-based carrier, which says it is the UK’s largest regional airline and recently confirmed that it is up for sale, said that in the year to March 31, its pre-tax profit came in at just under £5 million on a turnover of £161m, while it flew more than 910,000 passengers.

The airline highlighted its charter and contract operations helping accelerate its return to profitability, and it expanded its contract work in support of the energy industry at Aberdeen as well as now having several major football and Rugby SuperLeague teams amongst its client base for bespoke aircraft charter services.

Additionally, it has been signed up to deliver a long-term, five-year contract with Royal Mail to undertake its Highlands & Islands air services. Loganair added that it has become the UK’s third-busiest airline behind British Airways and EasyJet by the number of flights operated, and 2022 saw it experience its busiest summer to date and celebrate its 60th anniversary.

'Loganair is now in the strongest position of any UK regional airline to weather incoming storms affecting the wider economy,' says boss Jonathan Hinkles. Picture: contributed.

Boss Jonathan Hinkles said the airline has returned to profitability “far sooner than many of our UK airline industry peers”. He added: “It has, without doubt, been an incredibly tough two years. Even so… 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.”

Furthermore, the airline has announced a new long-term financing agreement with Virgin Money, continuing a working relationship with the bank dating back 20-plus years.