Airport bounces back with £3m of pre-Covid lockdown profit
Prestwick Airport had bounced back to show an operating profit before the Covid-19 crisis struck, new figures have revealed.
The Scottish Government-owned site turned a profit of £3 million for results up to March 31.
It followed a loss of £1 million the previous year.
Revenue at the base increased by 46 per cent year-on-year to £36 million, up from £24.6 million.
However, the published figures precede a period of more than three months where no passenger flights operated due to the effects of lockdown.
The coronavirus pandemic has also delayed the Government’s attempts to sell Prestwick, which it bought for £1 in 2013.
A preferred bidder, understood to be Glasgow Airport’s owner AGS Airports, was appointed in December.
Stewart Adams, chief executive, said the development of new revenue opportunities coupled with measures to control costs and operational efficiencies helped improve the airport’s financial performance.
He said: “This performance underlines Glasgow Prestwick Airport’s enhanced status as a vital strategic provider of international freight and aviation services, and a major infrastructure asset which benefits the Scottish economy.
“While we were very much on an upward trajectory in terms of profitability before the global pandemic, it is inevitable that our future revenue and profits will be affected due to the impact of coronavirus.
“Even before the pandemic, our financial performance was hampered by declining passenger numbers and revenue.
“In turn, we do not expect passenger numbers to return to pre-coronavirus levels in the near future.”
The airport is owned by TS Prestwick Holdco, a private limited company wholly owned by the Scottish Government.
Adams said talks are continuing with the preferred bidder, adding: “A preferred bidder was appointed as part of the sale process.
“Whilst talks with the preferred bidder are continuing, it has been necessary to extend the timeframe for these discussions.
“Due to Glasgow Prestwick Airport’s importance to Scotland’s national infrastructure, we are confident that the business can be sold in due course.
“We will continue to investigate opportunities to further develop the business under its current ownership but also with an eye to future ownership as part of a markedly different global aviation industry.”
Since April, Prestwick and its specialist freight services have played a key role in the welcoming and handling of personal protective equipment (PPE) for healthcare workers in Scotland.
Ayr MSP John Scott MSP welcomed the positive fugures, adding:“While the effects of the Covid lockdown will of course have taken a heavy toll over the last five months, the news that Prestwick Airport made an operating profit of £3million over the 12 months to March is very welcome indeed.
“The road back for the aviation industry looks to be a long one, and that will further impact our local airport, but last year’s operating profit is nonetheless a positive development.
“We must now hope that the ongoing discussions with the preferred bidder lead to an eventual sale of the airport to a new owner, who can further secure its long-term future.”