Bosses at Highlands and Islands Airports (Hial) are celebrating a record year for passenger numbers against a backdrop of widening losses.
The regional airport operator cited an increase in travel from oil and gas workers as the main driver for a 5.4% increase in passenger numbers to a record 1.367million at its 11 airports.
The biggest increase was at Sumburgh Airport, which is currently undergoing a £2million upgrade, with numbers up 32.2%.
Wick John O’Groats enjoyed a 21.7% increase in numbers during the year to March 31.
Scottish Government-owned Hial posted a 255% increase in pre-tax losses for the period, to £4.518million. This compares with losses of £1.272million the year before.
The firm said it had drawn on its cash reserves to fund an increase in capital investment to £17million, from £8million previously.
Major investments included £9.5million on repairs to Sumburgh Airport’s runway, which has been subject to erosion from heavy storm damage, and more than £2million spent at Inverness Airport.
Turnover increased 10% to £19.7million from £17.9million the year before, while public subsidies to the company fell to £21.847million from £22.189million previously.
Managing director Inglis Lyon said: “In many respects, 2013/14 was a particularly successful year for Hial, with record passenger numbers and a host of new or expanded routes across a number of airports.
“The period also saw significant investment in new capital projects, future proofing our airports for forecast growth.
“But there were challenges too, not least as some of our airline partners sought to rationalise their business in the face of rising costs.
“The future of access to the south-east remained up in the air and the impact of air passenger duty continued to be felt across the industry.”