Highlands and Islands air hubs operator cuts its losses

● Losses down to just £8,000 from £3.38m last time ● Holyrood praises ‘encouraging’ progress

Highlands and Islands Airports Ltd (HIAL) has sharply cut its losses in its 2016-17 financial year, as passenger numbers rose 15 per cent to 1.6 million.

The regional airport operator, which is wholly owned by Scottish ministers and provides vital transport links for remote communities, cut its losses to just £8,000 from a £3.38 million loss in the previous 12 months.

The private company boosted turnover to £21.4m from its 11 airports across the Scottish Highlands and Islands, which serves such communities as Tiree, Shetland, Islay, the Outer Hebrides and Caithness. Turnover in the previous year was £20.5m.

HIAL chief executive Inglis Lyon said the company invested £16m in the latest year, and said he believed it was set for further growth in the current financial year.

“Working with stakeholders, we are committed to supporting the essential socioeconomic role of aviation in Scotland through the maintenance and development of our airports, many of which provide important jobs and support in fragile economic areas,” he said. “However, whilst we are delighted with the progress being made, the HIAL board and our partners must take advantage of this positive position by finding additional funding from which to further invest in our facilities and services and ensure the growth trend continues to be upwards.”

Lyon added that 2016-17 had seen significant improvements in business and tourism traffic, “with new and additional flights to some of Europe’s busiest transport hubs, meaning the region is better connected by air than ever before”.

In recent years HIAL has focused on developing new routes from its airports, with new routes to Amsterdam Schiphol, London Heathrow, Norway’s Bergen from Kirkwall, as well as a first flight from Inverness to Palma, Majorca.

Humza Yousaf, Scottish Government minister for transport and the islands, hailed the “encouraging” progress at HIAL.

He said: “The rise in passenger numbers is particularly pleasing and underlines the importance of these airports to the remote communities they serve.

“Not only do they provide vital lifeline services and onward connectivity for travellers, but they also help support local economies by encouraging more people to visit the Highlands and Islands.” Tenants are being sought for a four-storey building on Edinburgh’s Princes Street that has been converted into offices with a trendy “de-furbished” look. Owners Hazledene House have worked on 132 Princes Street, with the Category B listed building’s former uses including HMV record shop, theatre, cinema and tea room. Geoff Scott, associate director at JLL, which is promoting the property, said: “We expect significant interest from a diverse range of potential occupiers.”