A SCOTTISH airport has announced a “significant turnaround” in its financial performance, despite the recent impact of the coronavirus.
Glasgow Prestwick reported an underlying operating profit of £3 million (subject to audit) for the 12 months to March 31, 2020. That is compared to the £1m loss it recorded the previous year.
Revenue increased by 46% year-on-year to £36m, up from £24.6m the previous year.
However, the figures only overlap with a short span of the coronavirus lockdown, which started on March 23. There have been very few passenger flights since then.
Stewart Adams (pictured), chief executive at the airport, said the underlying principles of its financial performance were based on the development of new revenue opportunities, coupled with measures to control costs and operational efficiencies.
He said: “This performance underlines Glasgow Prestwick Airport’s enhanced status as a vital strategic provider of international freight and aviation services, and a major infrastructure asset which benefits the Scottish economy.”
However, Adams recognised the immediate and long-term challenges facing the global aviation sector, particularly businesses connected to passenger travel.
He said: “While we were very much on an upward trajectory in terms of profitability before the global pandemic, it is inevitable that our future revenue and profits will be affected due to the impact of coronavirus.
“Even before the pandemic, our financial performance was hampered by declining passenger numbers and revenue. In turn, we do not expect passenger numbers to return to pre-coronavirus levels in the near future.”
Adams also provided an update on the process to return the airport to private ownership.
The airport is currently owned by TS Prestwick Holdco, a private limited company wholly owned by the Scottish Government, after being bought for £1 in 2013.
It had been losing around £2m a year before the sale, made under New Zealand firm Infratil.
When Prestwick was put up for sale by the Government last June, they said the preferred bidder would give a commitment to maintain aviation operations, maximise the business’s employment potential, and have significant investment capabilities.
Adams said: “A preferred bidder was appointed as part of the sale process. Whilst talks with the preferred bidder are continuing, it has been necessary to extend the timeframe for these discussions.
“Due to Glasgow Prestwick Airport’s importance to Scotland’s national infrastructure, we are confident that the business can be sold in due course.
“We will continue to investigate opportunities to further develop the business under its current ownership but also with an eye to future ownership as part of a markedly different global aviation industry.”
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