Scottish low-cost carrier Flyglobespan has defied the aviation downturn by announcing it will post record annual profits of £1.2 million for the year to 31 October 2008.
This marks a stark turn around for the Edinburgh-based airline, which posted losses exceeding £10m in the previous year due to investments in new aircraft, rising fuel and problems on its Canadian routes. At one stage it was tipped by industry insiders as one of the next casualties in the aviation crisis.Chairman Tom Dalrymple (pictured above) said: “I said that 2007 was a blip - a one-off year in what had been over 30 years of successful trading, and one that wouldn’t happen again. And I was right.
“We are back into profit and, had the fuel rises not been so steep, that profit would have been considerably more. But, considering the difficulties of the sector, I have no complaints.”
He added: “Our outlook is positive. Globespan has no debt, we have cash reserves built up from nearly 35 years of trading and we also have significant property assets.”
Group chief executive Rick Green said: “Our sales and revenues are on plan. Our core routes for 2009 are holding their popularity and our new destinations in Turkey and Egypt are performing exceptionally well. Now we concentrate on the next stage of our plan, the continued growth of our profits.”
The airline’s return to profitability was helped by strong load factors in the summer months and revenues from leasing out planes and crews during the quieter season.