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Prestwick Airport profits from military fuel sales

Getty Images Cargo plane taking off from Prestwick AirportGetty Images
Prestwick was boosted by increased fuel sales as well as passenger and cargo growth

Military exercises and aid for Ukraine helped Prestwick Airport post a profit for the third year in a row.

The Scottish government-owned airport saw fuel sales return to pre-pandemic levels in the year to 31 March, boosted by "strong" military aircraft movements.

They included Canadian planes carrying supplies and weaponry to Ukraine after the outbreak of war in February.

Sales of fuel over the year nearly doubled to reach 36 million litres.

They accounted for £13m of its £16m year-on-year rise in revenue, which reached £35m.

Operating profit for 2021-22, before exceptional items, stood at £1.9m, while overall profit was £1.2m.

The airport also recorded growth in cargo and passenger figures.

Cargo volumes were up 38% year-on-year, peaking at more than 18,000 tonnes, while passenger numbers rose over the year from 47,000 to 118,000.

The Scottish government took the airport into public ownership in 2013 and financially supports the business through the provision of long-term loan finance.

Its outstanding balance, as of 31 March 2022, was £43.4m.

Airport operator TS Prestwick Holdco Ltd, which has not drawn down funds for more than three years, said in its annual accounts that it did not expect to require any additional loan support in the next 12 months.

It added that Transport Scotland had confirmed it would not seek repayment of all or part of the loan facility or accrued interest until at least 31 March 2024, "although support is expected to continue beyond this date for the foreseeable future".

Getty Images Cargo plane takes off from PrestwickGetty Images
Cargo volumes rose sharply last year at Prestwick as the airport began to recover from the pandemic

Following publication of the latest annual results, chief executive Ian Forgie said it had been "another year of good performance in difficult economic conditions".

He added: "With the full support of the Scottish government the new board is focused now on building Prestwick's core strengths and investing for the future.

"Our masterplan is looking afresh at growth opportunities in cargo, expanding aircraft maintenance and training facilities, the Spaceport programme and delivering our sustainability strategy ambitions."

"All of this will take some time to deliver against the current stormy global economic backdrop and inflationary pressures.

"However, the progress made is there for all to see, our strategy is clear, and the future is looking bright for the airport."

Last December, The Scottish government said it had decided not to sell Prestwick Airport after rejecting a second bid to take it back into the private sector.

The government bought the airport for £1 in 2013 when it was threatened with closure due to heavy losses.