Airports report more passengers

State-owned HIAL receives government subsidies

The numbers of passengers passing through Highlands and Islands airports reached a record 1.2m for the year up to March.

Publicly owned Highlands and Islands Airports Limited (HIAL) said the figure represented a 3% increase on last year.

However, its newly-released annual report and accounts show a trading loss for the period of £724,000 after tax.

HIAL said one of the highlights of the past year was the transfer of Dundee Airport to its ownership.

The airports reporting the greatest gains in passenger numbers were Kirkwall on Orkney with a 9% increase and Sumburgh on Shetland with 13%.

Economic growth

The loss came despite the company generating a record £15m in revenue.

Subsidies received from the Scottish Government for the year totalled £29.2m.

HIAL chairman David Sutherland said effective air links were essential for economic growth and drawing people to the area.

He said: "Our continuing strategic priority is to provide a safe and efficient group of airports while pursuing development opportunities which improve the air transport network serving the region.

"Our results for the year demonstrate that we have delivered against these targets and ensured that our airports have continued to play a central role in the economic and social life of the Highlands and Islands and Tayside."

The release of the report came a day after management and trades union, Unite, held talks to try to resolve a pay dispute involving firefighters employed at airports throughout the Highlands and Islands.