Cost pressures

New Loganair chief Farajallah cautions on trading

Luke Farajallah: committed to building resilience

Luke Farajallah, the new CEO of Loganair, issued a cautionary warning on trading for the financial year ending this weekend but said investment in the Scottish airline should come through in future results.

The current trading year, ending 31 March, has been marked by cost and operational pressures, he said, which contrasts with the year to the end of March 2023 when it reported a profit of £10.9 million.

That was a sharp rise on the £4.98m posted in 2022 when the Glasgow-based business was recovering from the pandemic.

Mr Farajallah, who recently replaced Jonathan Hinkles, said: “It’s encouraging to see we achieved further strong growth in our financial accounts to March 2023, ensuring we can continue to operate lifeline services sustainably and on a year-round basis.

“Whilst the result… looks encouraging, it will not be lost on anyone that the current financial year, that will finish at the end of this month, has been one of fleet transformation, operational challenge and inflationary pressures – the latter of which is affecting businesses across Scotland and the UK.

“We are absolutely committed to building resilience and enhancing our performance for our customers, meaning our future results will reflect the significant investment being made.”

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