Airport proves versatility after posting small operating profit
Bosses insist outlook is encouraging despite ownership doubts
Bosses at Prestwick Airport insist they have an encouraging outlook despite ongoing uncertainty around their ownership.
It comes as the flight hub delivered a positive performance over the last 12 months, with total operating profit before exceptional items at £500,000.
Prestwick chiefs said the business had shown a “steady improvement” in performance since the 2016/2017 accounts when operating losses stood at £7.8m.
This has allowed the business to recognise underlying asset value in line with accounting standards by reversing previous non-cash impairments.
Accounts show that the airport’s increasing focus on its other operations such as military flights has created a stronger business model, allowing it to adapt to the sharp drop in passenger numbers due to the lockdown restrictions in 2020.
Speaking upon its publication, CEO Ian Forgie said: “The last two years have been tough with a global pandemic impacting every part of our lives.
“During this time our staff, management and directors have worked hard to ensure that Glasgow Prestwick Airport continues to adapt to maintain operations throughout the period, whilst continuing to deliver the excellent service that we have become known for.
“We are therefore pleased to have been able to generate a small operating profit last year despite lockdowns and travel restrictions.
“Our financial performance is not simply reliant on passenger numbers, and we will continue to develop our diverse and distinctive range of services with a team that is agile and passionate about the success of the airport.
“The future of the airport is significantly brighter now than it was five years ago, however, we are realistic that the short-term outlook remains tough with headwinds continuing to impact travel and global supply chains.
“The Scottish Government has restated its long-term commitment to return the airport to the private sector and having carefully considered bids received under a recent sales process have decided to not to proceed with a sale at this time.
“I am pleased that the airport retains the confidence and support of our shareholder and with a new chairman and recently refreshed operating board we look forward to the airport continuing the progress of recent years by focusing on the development of new revenue opportunities and building on its strengths.”
It comes as the airport’s future ownership remains in the balance after the Scottish Government revealed they had “decided to not proceed with a sale at this time”.
A new buyer was lined up for the flight hub last February following the collapse of a sale from an undisclosed preferred bidder five months earlier in 2020.
Scottish Government ministers had formally put the airport up for sale in 2019 after they paid £1 for the base in 2013 to take it into public ownership.
But finance secretary, Kate Forbes, said: “Having carefully considered bids received under a recent sales process, I can advise that ministers have decided to not proceed with a sale at this time.”
But she added that the government “remains supportive of the business” and that “Scottish ministers still intend for Prestwick Airport to return to the private sector at the appropriate time and opportunity.”
Colin Smyth, Labour MSP for South Scotland, said: “The collapse of this botched deal has been a long time coming.
“Serious questions need to be asked about the government’s handling of this sale.
“They agreed to the preferred bidder and the sale has collapsed on their watch.”