Loganair, the UK’s largest regional airline, saw profit fall in last financial year as it faced a number of operational challenges.
Pre-tax profit for the year to the end of March 2024 fell to £6.9 million from £10.9m in the previous 12 months. Turnover hit a record £265.1m from £247.3m.
Loganair flies 36 aircraft across over 60 routes and over the period carried more than 1.5m scheduled passengers, as well as operating charter services for the oil & gas industry, and delivering on its multi-year contract with the Royal Mail.
However, weeks after joining as CEO at the end of the period, Luke Farajallah said he would be cutting a number of routes and reducing others after the Scottish airline completed a fleet transition and switched to larger aircraft.
From May this year the airline cancelled services between Aberdeen and Teesside, Aberdeen and Newcastle, as well as Glasgow and Southampton.
Several other routes saw minor adjustments to frequency, in varying stages, until the end of the summer schedule on 26 October.
In the summer of 2023 the airline was put up for sale, but in October last year it was taken off the market, with no reason given for the change of plan.
Commenting on the latest results, Mr Farajallah said: “The financial year ending March 2024 was challenging and the results reflect an environment where many, often industry-wide obstacles had to be overcome.
“Having now completed our fleet renewal programme, our focus in 2024 has been to improve operational performance, and reduce costs including those associated with flight disruption.
“I am pleased to report that the business has responded very well to the changes introduced, and that we have seen a dramatic reduction in delays and cancellations and their associated costs. Our focus has also been to improve the customer experience, with upgrades to our aircraft cabins, improvements to the website, and Airport processes.
“Our aim going forward is to build on the positive trends seen in 2024, and to set solid foundations for the next phase of growth for the airline.
“I am confident that future financial performance will reflect the various changes and interventions being made, and that our investors, employees and customers can look forward to a bright future.”
#Loganair #CEO #positive #obstacles #hit #profit #Daily #Business