Aurigny 'will be back in profit inside two years'

AURIGNY should be turning a profit within two years, its managing director has said.

Malcolm Hart (pictured) was speaking after it was announced in last week's Budget that the States-owned airline looks set to record significant losses again.

It was running at an operating loss of £1.2m. for the year up to September after posting a £1.5m. deficit in 2008.

Fuel costs had hit its bottom line hard. But Mr Hart said Aurigny could be back in profit by 2011.

'Willie Walsh, the chief executive of British Airways described the 2008-2009 trading period as "...the most difficult year in the history of the airline industry". We are disappointed with the 2009 figures but can only emphasise Mr Walsh's statement that this was a most challenging and turbulent time to be operating an airline - in fact it is estimated that the industry lost $16bn during this period,' said Mr Hart.

'Aurigny operates a lifeline service for Channel Islanders to a number of major destinations for 52 weeks of the year and annually generates millions of pounds for the Guernsey economy. We spent £3.2m. with Guernsey and Alderney airports during this period.

'Unfortunately, the US dollar/sterling exchange rate plus the rise in fuel prices (£600K over budget in this period) had a direct and profound effect on all areas of profitability. While keeping fares down we were forced to spend £1.1m. more on fuel than in the same period in 2007.'