Operating losses at publicly-owned airport operator Highlands and Islands Airports (Hial) were slashed from £3.38million to just £8,000 in the last financial year.
Figures released by the company yesterday also showed passenger numbers were up 15.4% at a record 1.6million in the year to the end of March, compared to the previous 12 months, and its turnover rose to £22million from £20.6million in the same period.
Pre-tax losses narrowed to £985,000, from £4.3million previously.
Scottish Transport Minister Humza Yousaf described the annual results as “very encouraging” for Hial, which manages and operates 10 terminals in the Highlands and Islands as well as Dundee Airport.
The recently lodged figures highlight £16million investment in facilities during the year by the private limited company, which is wholly-owned by Scottish ministers.
Chief executive Inglis Lyon said he believed the group was in good shape for further growth in the current financial year.
He added: “We are committed to supporting the essential socio-economic role of aviation in Scotland through the maintenance and development of our airports, many of which provide important jobs and support in fragile economic areas. However, while we are delighted with the progress being made, the Hial board and our partners must take advantage of this positive position by finding additional funding from which to further invest in our facilities and services and ensure the growth trend continues.”
“Over the last year we witnessed significant improvements both in business and tourism traffic, with new and additional flights to some of Europe’s busiest transport hubs, meaning the region is better connected by air than ever before.”
During the year, Hial completed a £6.3million refurbishment of Sumburgh Airport and spent £1.4million improving facilities at Inverness.
Mr Yousaf said: “These figures are very encouraging and I commend the staff at Highlands and Islands Airports for their hard work.
“The rise in passenger numbers is particularly pleasing and underlines the importance of these airports to the remote communities they serve.
“Not only do they provide vital lifeline services and onward connectivity for travellers, but they also help support local economies by encouraging more people to visit the Highlands and islands.”
Mr Lyon said the organisation had placed “additional emphasis” on creating an “even more efficient operation”.
He added: “Hial operates within a tight budgetary framework. This means we must continue to achieve economies of scale where possible, managing costs without compromising safety. The organisation must continue to be innovative and adaptive.”
