Highlands and Islands Airports release 2021/2022 results
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Highlands and Islands Airports Limited (HIAL) has released its annual results from 2021 - 2022.
According to the report passenger numbers across the group increased by 162 per cent and aircraft movements increased by 62 per cent as compared to 2020/21, due to the lifting of COVID restrictions. Passenger numbers also reached 61 per cent of pre-pandemic (2019/20) levels at the end of the reporting year.
Public subsidies received by HIAL for the year ended 31 March 2022 amounted to £76m compared to £56.8m in 2021. Revenue increased by £3.2m from 2021 to 2022, and capital increased by £16m from the previous year.
HIAL says that it invested over £36m in key capital projects across its 11 airports, and head office at Inverness Airport during 2021/22. These ranged from runway resurfacing projects to the introduction of new systems to support finance, human resources and operational functions.
It also successfully delivered Phase One of the Sustainable Aviation Test Environment (SATE) and associated infrastructure at Kirkwall Airport. This included the first hybrid electric flights by Ampaire, crossing the Pentland Firth from Kirkwall Airport to Wick John O’Groats Airport in August 2021.
HIAL chair woman Lorna Jack, said: “The 12 months to March 2022 brought a mixture of both optimism and challenge for the organisation as the Covid rules and restrictions that controlled the country for so long were lifted.
“This allowed HIAL to refocus on its strategic plans and get back to providing business as usual airport services very quickly.
“Recovery will take some time and we continue to do all we can to support our customers and partners as we work together to build back confidence in air travel.”
However, HIAL also said that Scottish Government indicative budgets show a decrease in the available funding for the business over the next three to four years, which presents a significant future funding challenge. The pressure this creates for the company is further compounded by increasing inflation and rising costs.
Ms Jack added: “As with every other organisation, HIAL must seek to optimise its earned income, reappraise priorities and spending options, and make challenging decisions based on the extraordinary circumstances we are all facing, as economic pressures impact our day-to-day activities and our future plans.”
Managing director Inglis Lyon, added: “Based on the devastating impact of Covid-19 on passenger numbers during 2020/21, we set a cautious budget target of reaching 25 per cent of pre-Covid passenger levels as an airport group by 31 March 2022.
“I am pleased that the vaccine roll out and strong uptake contributed to passenger numbers exceeding expectations, and we reached 61 per cent of 2019/20 levels at the end of the reporting year.
“HIAL will continue to work in partnership with Transport Scotland, our airline operators and local communities to ensure the long-term sustainability of aviation connectivity for the Highlands and Islands.”
