Scottish airline Loganair has posted a pre-tax loss of £8.93 million for the year ending March 2018, according to reports.
Based at Glasgow Airport, the carrier has blamed the end of its franchise agreement with Flybe, resulting in both competing head-to-head on six routes, including five in the Highlands and Islands.
The BBC reports that without the non-recurring items associated with the airline’s former partner, Loganair would have recorded an underlying pre-tax profit of £2.95 million.
After the break-up with Flybe, Loganair spent £2.98m on re-establishing its own brand and back-office functions, while delays in codesharing agreements with new business partners cost a further £2.09 million.
The price war with Flybe though has been given as the main reason for the loss in the year ending March 2018, which is estimated to have cost Loganair £6.8 million.
On a positive note, turnover was up by seven per cent to £110 million, and passenger numbers were also up by 6.2 per cent to 812,541.
Chairman David Harrison said the results bring to an end 17 consecutive years in profit for Loganair and the loss is a direct result of competition on six of the carrier’s eight largest routes.
Scottish Media reports earlier this week claimed Loganair was to bring jet aircraft for the first time between Glasgow and Stornoway with the additional prospect of new European routes to and from the islands from next year.