Loganair cuts up to 15pc of winter flights as jet fuel costs soar

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Summary · why it matters

Loganair, Scotland's largest airline, will scrap up to 15pc of its winter timetable, cutting lifeline services to Stornoway on Lewis, Kirkwall in Orkney and Sumburgh on Shetland after kerosene costs climbed more than 50pc above levels seen before the Iran war. Chief commercial officer Ronnie Matheson told the Scottish Parliament's transport committee the airline is making a profit of just £4 per passenger and that no location will lose flights entirely, though journey times to Edinburgh will lengthen as routes are combined. Matheson said Loganair is reviewing its wider network and could not rule out further cuts without state support, adding that new Scottish National Party funding of more than £1m that restored weekday Inverness flights on Oct 26 will run out in March. Scottish Liberal Democrat MSP Willie Rennie accused Loganair of cherry picking routes, saying that since it already receives state aid on some flights it should subsidise less-profitable ones. The cuts come as carriers brace for higher oil prices to hit profits, with EasyJet trimming winter capacity by 1.4pc, or about 700,000 seats, and Ryanair cutting capacity by 4pc while warning fuel prices could stay near current levels through next year.

Impact on assets 2

Industrials▼
EasyJet PLC
EZJ
▼ NegativeSupplyrelevance

EasyJet is trimming winter capacity by 1.4pc (~700,000 seats) as higher jet fuel costs squeeze profits.

Ryanair Holdings plc
RY4C
▼ NegativeSupplyrelevance

Ryanair is cutting capacity by 4pc and warns fuel prices could stay near current levels through next year.

Off-coverage companies 1

Loganairi
Private▼ NegativeSupplyrelevance

Loganair will scrap up to 15pc of its winter timetable after kerosene costs climbed more than 50pc above pre-Iran-war levels.