UK regional carrier Loganair has returned to profitability for the first time since the start of the pandemic as the company seeks a new owner.
The Scotland-based airline, which is celebrating its 60th anniversary this year, announced earlier this month that its long-term shareholders had put the business on the market and has appointed advisors to review options for the sale.
Loganair said that it had made a pre-tax profit of £4.98 million on a turnover of £161 million for the financial year ending on 31 March 2022. This turnaround followed two years of losses during the Covid-19 crisis.
The airline carried a total of 910,000 passengers during the year, making it the UK’s third busiest airline behind British Airways and easyJet. Loganair also “experienced its busiest summer to date” in summer 2022.
Jonathan Hinkles, Loganair’s CEO, 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 mean 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.”
Loganair added that it had now repaid the UK government loan it had taken out during the pandemic - nine months ahead of the scheduled closure of the scheme - and moved to a new “long-term” financing agreement with Virgin Money.