£24m loss for Aurigny in 2020

Tuesday 17 November 2020

Aurigny's predicted losses for this year have more than doubled since the 2020 budget, and losses are expected to continue into 2021 as it remains an 'airline in waiting' with travel still uncertain across the globe.

The forecasted £24m loss is based on a predicted 30-40% reduction of passengers compared to 2019, as the airline anticipates consumer demand to be impacted well into 2021. The airline currently has a cash requirement of £53m.

Before the pandemic hit, the States-owned airline was forecast to lose almost £10m this year. In March, the States of Guernsey agreed an additional overdraft facility of up to £27m for Aurigny, to ensure it was ready to return to 'normal' service as soon as it was able. However, a second wave of the pandemic has prevented any meaningful resumption of travel in 2020. 

Aurigny has remained 'business ready' during this down period, keeping staff fully trained and maintaining aircraft so that normal services can resume as soon as conditions allow.

Pictured: Aurigny recently cancelled all flights to the Isle of Man, after a cluster of covid cases in the Bailiwick prompted the island to put the 'air bridge' on hold for the foreseeable future.

The airline has actively sought additional revenue streams during this time, including the Isle of Man air bridge, summer 'staycations' in Guernsey and Alderney, chartered flights including the high-profile Formula One chartered series, the sale of older ATR aircraft and the furloughing of staff and reduction of salaries.

However, CEO Mark Darby says its most important work has been maintain vital 'lifeline' links throughout the pandemic.

"We have played an active role in ensuring people are able to get vital medical treatment off-island, helped with essential worker travel, and also took many students to University, and will be carrying 400 plus students in December to ensure they get home for Christmas," he said.

"This year's financial performance reflects the enormous impact of the pandemic, and the cost that has had to be incurred to maintain the island's lifeline air links throughout. This has once again proved the strategic importance of owning an airline, to maintain and protect key connectivity for the community."

The 2021 States' Budget recommends increasing the overdraft facility to £53m for 2021; Mr Darby said that Aurigny will support the re-establishment of an 'air links framework', and will work with the new States' Assembly to ensure that the airline can support the Revive and Thrive programme.

Deputy Mark Helyar said that the States has met with Aurigny's new CEO to discuss the strategy for the airline going forward, to do something about the 'unsustainable' losses currently forecast.