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July 20, 2015

Prestwick Airport posts £8.9m loss

Glasgow Prestwick Airport's losses increased as the number of flights reduced due to decrease in passenger traffic.

Glasgow Prestwick Airport

Glasgow Prestwick Airport’s losses increased as the number of flights reduced due to decrease in passenger traffic.

For the year ended 31 March this year, the Scottish Government-owned airport reported pre-tax losses of £8.9m, compared to £4.6m posted for the year-ago.

TS Prestwick Holdco, the company established to acquire the airport on behalf of Scottish ministers, estimates that the transfer of some Ryanair flights to Glasgow Airport could severely hit Glasgow Prestwick’s performance in the current financial year.

"We safeguarded 3200 jobs and secured a vital infrastructure asset that contributes more than £61m annually to the Scottish economy."

Prestwick Airport CEO Iain Cochrane said: "Following another challenging year, the airport continues to work to turn around the financial performance and there are promising signs in a number of areas, though growing the passenger business remains a challenge whilst air passenger duty exists at its current level.

"The airport is a frontrunner in the process to become the first designated UK spaceport and is continually looking for opportunities to maximise both income and the broad scope and opportunity offered as a strategic national asset."

The airport’s loan from the Scottish Government has also increased from £4.5m at the end of March last year to £10.8m at March 31 this year.

In 2013, the Scottish Government acquired Prestwick Airport from New Zealand-based Infratil for a nominal consideration of £1, bringing the airport into public ownership.

Scottish Government spokesman said: "By stepping in to save the airport, we safeguarded 3200 jobs and secured a vital infrastructure asset that contributes more than £61m annually to the Scottish economy."


Image: The Scottish Government acquired Prestwick Airport in 2013 for £1. Photo: courtesy of Raymond Okonski / Wikipedia.

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