Aurigny back in profit after years of losses

The airline was bought by the States in 2003, but since then the government has had to repeatedly bail it out, recapitalising by nearly £90m. since 2016 to cover ongoing losses.

But now a reduction in passenger losses, reduced costs by increasing operating productivity and fuel reduction have helped reverse the airline’s fortunes.

The States accounts showed that the airline was expected to make a £1.4m. loss in 2022, but Aurigny instead declared a £6m. profit.

‘This is the best operating result in 15 years, it has been a good year and I’m very happy with the outcome,’ said Aurigny CEO Nico Bezuidenhout, who took on the top job in 2020.

Of the £6m. noted in the accounts, £1.8m. was States’ impairments and provision.

The £4.2m. of Aurigny’s profit came from improvements made to operation productivity.

Passenger losses were reduced from £17.15 per person in 2019 to £1.06 in 2022.

Aircraft productivity was increased by 36%, staff proactivity by 5.8% and fuel consumption was reduced by 10% – the equivalent to 1.4m. litres.

The airline made this improvement by switching to more ATR flights as opposed to the Embraer jet, which is 35% more fuel-heavy per seat than the ATRs. It also ensured flights were full of passengers, with fewer empty seats.

Aurigny carried 520,000 passengers in 2022, which is 98.5% of pre-Covid 2019 levels.

‘We are in a high inflation environment at the moment, which is putting pressure on businesses,’ said Mr Bezuidenhout.

‘We managed to keep prices below the rate of inflation.

'Fares increased by 1.7%, whereas between 2019 and 2022 inflation increased by 12%.’

Last year Aurigny launched a broader network, serving 30 destinations, 15 of which were across Europe.

This year Aurigny is offering direct flights to destinations such a Malaga, Barcelona, Prague, Ibiza and Faro and they have been well supported.

‘We can now try to make sure our rates and increases are lower, meaning savings for consumers and more destinations to and from the island,’ said Mr Bezuidenhout.

‘The price of the fares are set just to make it break even so we can provide a service back to the community.’

However infrastructure challenges, such as technical difficulties with Aurigny’s Alderney Dornier aircraft, have had an impact.

Mr Bezuidenhout said that had a cost and affected reliability and expectations, but he remains hopeful that Alderney’s runway could be extended.