Transport / Loganair defends profits as ‘modest and fair’ amid calls to slash ticket prices
LOGANAIR has defended pre-tax profits of £11 million as “modest and fair” after calls from Orkney’s MSP for the airline to slash air fares.
The company announced earlier this week its pre-tax profits had risen by almost £4 million to the end of March 2025, with less delays, cancellations and compensation pay-outs attributed to the rise.
Dividends of £8 million were paid out to Loganair’s shareholders as a result of the performance.
That had led Orkney MSP Liam McArthur to call for Loganair to cut the price of its tickets, saying there had been a 17 per cent increase on fares over the last year.
Lerwick Community Council’s meeting on Monday also heard from two members who said they had been charged high fares at the last minute.
Amanda Hawick said she stumped up £130 for a late flight between Orkney and Shetland, while Jim Anderson paid £300 for a one-way trip up from Aberdeen.
Anderson called the fares “ridiculous”.
But Loganair’s head of government and corporate affairs Simon McNamara defended the airline at a meeting of the external transport forum on Tuesday afternoon.
He said their profit margin was just 4.3 per cent, adding that was “not excessive”.
And he said Loganair only made a £3.97 profit per passenger over the 2024/25 year.
McNamara said he had bought a cup of coffee in Edinburgh Airport on the way north, which “in the blink of an eye” cost more than that profit.
“We think it’s a modest and fair profit,” he added.
Responding to concern about the cost of Hawick’s last-minute flight – on which she said there were 15 empty seats – McNamara said airlines would always charge more for a ticket bought at the very last minute.
“The later you book, the more expensive it is,” he said.
“It’s not related to how many seats are left. If we offer a last-minute fare for £10, that’s not going to cover the cost.”
McNamara said that was industry standard, and that the days of snapping up a seat at the last-minute for next to nothing were now gone.
Loganair chief Luke Farajallah said he felt a large chunk of the airline’s seats, particularly on Shetland routes, went out on reduced fares.
He added the airline “have to make a profit”.
While pre-tax profit was up for Loganair this year, turnover was down from £264.1 million in 2024/25 to £253.1 million.
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