The operator of airports serving the Highlands and islands is continuing to run at a loss, despite welcoming 1.3million passengers last year.
Highlands and Islands Airports (Hial) invested more than £8million upgrading its 11 airports last year, according to its annual report and accounts for 2012/13.
However, the company still reported an operating loss of £896,000, although that was a slight improvement on the £969,000 lost the previous year.
Passenger numbers increased during the year by 39,224, up 3.1%, to 1,297,676, the highest since 2008/2009. The increase was achieved despite a slight drop in the number of flights operating at Hial’s airports. The number of aircraft movements fell by 0.1% to 127,641.
Inverness was the busiest airport in passenger terms, with 611,382 passengers.
Grenville Johnston, chairman of Hial, said: “The aviation industry has emerged from one of the most challenging downturns in its history.
“At Hial, we have been working hard, with our airline partners, to provide a diverse network of routes, some of them lifeline, others more geared towards the business and tourism sector. Collectively, these routes play an important role in driving Scotland’s regional economy.
“Our airports are among the most peripheral in the UK, serving parts of Scotland where air is the only practical form of long-distance travel. So, it is vital that we redouble our efforts to ensure these communities remain connected.”
However, he said the withdrawal of key services at Dundee and in the Western Isles, and the threat to links between the regions and London, presented challenges. The Hial group is wholly owned by Scottish ministers and receives a public subsidy.
During 2012/13, Hial invested more than £8.4million in capital projects across its airports.
This included £1million to strengthen the south apron at Inverness, £1.1million at Campbeltown to refurbish the runway and create a new airport operations hub, and £1.1million for runway repairs and the refurbishment of a hangar at Sumburgh Airport.
Inglis Lyon, managing director of Hial, said that the group was determined to “provide a route network that supports social mobility and fosters economic growth” across regional Scotland.
“The success of flybe’s Inverness to Amsterdam service illustrates the enormous benefits that air travel brings to the regional economy, both in terms of connecting businesses and supporting inbound tourism,” he said.