Loganair, the Scottish regional carrier, has reported a dip in profits for the year ending March 2024, attributing the decline to operational disruptions and ongoing supply-chain issues. Despite the lower profits, the airline remains optimistic about its long-term financial health, highlighting positive strides in its fleet transition and operational improvements.
Lower Profits, But A Positive Trend
For the 12 months ending 31 March 2024, Loganair posted a profit of £6.9 million ($8.7 million), down from £11 million pre-tax and £10.2 million net the previous year. While the profit decline marks a setback, Loganair emphasized that the results still represent a “positive financial trend” despite the challenges faced over the year.
Loganair’s chief, Luke Farajallah, acknowledged that the results reflect an environment rife with industry-wide obstacles, including the airline’s ambitious fleet transition, which saw it replace its older Saab 340 aircraft with newer ATRs. The move, part of the airline’s ongoing modernization efforts, came with significant investment and operational challenges, which contributed to the profit dip.
Operational Hurdles and Supply-Chain Disruptions
The airline, which operates a fleet of 36 aircraft, reported carrying 1.5 million passengers in 2023-24. However, ongoing disruptions, including supply-chain issues and rising costs due to inflation, have weighed heavily on Loganair’s performance. These factors led to delays and cancellations, which further impacted profitability.
Loganair’s management has been working on overcoming these hurdles, with a strong focus on improving operational performance. Farajallah noted that the airline has made substantial progress in reducing delays and cancellations, which has helped mitigate associated costs.
Fleet Renewal and Cost Reduction Focus
A major part of Loganair’s strategy during the period was its fleet renewal. The transition from the Saab 340 to ATR aircraft is expected to provide long-term operational benefits, including increased fuel efficiency and reliability. According to Farajallah, these changes have already resulted in a significant reduction in delays and operational disruptions, which is helping the airline lower costs.
Looking ahead, Loganair is focused on further improving its performance through operational efficiencies and cost reduction. The airline is confident that the changes it has implemented will lead to stronger financial results in the coming years.
Looking Forward: Optimism Despite Setbacks
Despite the challenges faced in 2023-24, Farajallah expressed confidence in the airline’s future performance. He stated that the steps taken to address operational disruptions, supply-chain issues, and fleet renewal would position Loganair well for the future.
“We have seen a dramatic reduction in delays and cancellations and their associated costs,” Farajallah said, adding that the airline is well-positioned for sustainable growth. He expressed optimism that the airline’s interventions will lead to improved financial performance, and that stakeholders—employees, customers, and investors alike—can expect a bright future ahead for Loganair.
