‘People priced out of flights’ as Loganair profits rise

Islanders are being priced out of air travel on ‘lifeline’ routes to and from Orkney, according to the county’s MSP. 

Lower fares are required across the board rather than flash sales, says Liam McArthur, who has met with Loganair representatives to urge them to make air travel cheaper.

His call comes as Loganair posted profits of £11 million for 2025 — with £8 million paid in dividends to shareholders.

Mr McArthur met with Loganair on Monday and reinforced the need for the airline to bring down prices and make services more accessible to islanders.

With the cost of fuel also coming down, Orkney’s MSP also called on Loganair not to proceed with a planned increase in its fuel ‘surcharge’ on passengers from January next year.

Mr McArthur said: “The reliability of Loganair’s services has greatly improved over the past year or so, which is very welcome.

“However, the cost of fares has continued to climb, making this ‘lifeline’ service increasingly unaffordable for many islanders, even with the Air Discount Scheme.

“Loganair have offered discounts on tickets every so often, but that doesn’t reflect how islanders tend to use the service. What is needed is lower fares across the year, not simply ‘flash sales’ once in a while.”

Loganair’s latest results show a 17 per cent year-on-year increase in the cost of fares.

At the same time, the airline reported pre-tax profits of £11m, up from £5.9 million the previous year.

This has been attributed to more stable operations, fewer delays and a reduction in flight cancellations leading to fewer compensation payments. 

£8 million was also paid out to shareholders.

Mr McArthur said that islanders recognised the importance of profitability, particularly in the wake of the demise of Eastern Airways.

“However, a balance must be struck and that doesn’t seem to be happening right now,” Mr McArthur continued.

“In my meeting with Loganair today, I made clear that more must be done to bring down the cost of fares, including by not increasing the fuel ‘surcharge’ next month.

“Over the past year, I have been told on many occasions by Loganair’s management that they are ‘alive’ to this issue. Their annual results suggest the time to act is now.”

Loganair has been approached for comment.