Aurigny CEO questions mandate to 'break-even'

The chief executive officer of Guernsey's States-owned airline has raised questions over its mandate to break-even.

Aurigny's latest accounts showed the airline made a loss of £6.3m, a slight improving on the 2024 £6.5m loss.

Nico Bezuidenhout said: "Where 70% of activity is now on lifeline services, it becomes debatable on whether or not break-even is the correct and right mandate."

He added that pilot shortages played a big part in their expenditure adding that it was "difficult to attract and retain pilots onto the island".

In 2025, staffing costs were up around £200,000 on the year prior, the accounts showed.

Government accounts stated "extended sickness among several senior flight crew, together with retirements" meant they had to use lease staff.

It also added a tail strike taking one aircraft out of service for three months and the late return of another aircraft for winter maintenance "further increased reliance on outsourced service providers".

Following the collapse of Eastern Airways in October and Blue Islands in November, the report said Aurigny moved quickly to operate substitute routes which incurred "significant costs to launch services at short notice".

The airline spent £4.9m leasing aircraft in 2025.

The documents for Aurigny showed the expenditure on leases was significantly higher than previous years when it spent around £1m in 2020 and 2021, although it was lower than the 2024 figure of £6.9m.

Islander James Smith said it was "disappointing" to hear the airline had made a loss.

But he added the airline had its hands tied with fares due to latest competition with British Airways.

"The flights are usually fairly reasonable and I think because they've got competition now, they can't really bring up the prices any more, thank goodness" he said.

Ros Hughes said "it's sad" that Aurigny is costing the island money but added that "it is a vital service".

Her husband, Martin said he did not see the airline ever making any money.

He added the airline could particularly struggle with competition from British Airways.

Phil Falla said it was a "great shame" the airline had made a loss because islanders "should be proud" to have their own airline.

He added he "would like to be able to support" Aurigny, but thinks it needed to improve the efficiency of its operation.

Dr David Byron, former managing director of the low-cost airline Bmibaby, said he understood how tough the sector is.

"The short haul, small niche airlines, it's very, very difficult" he said.

He added if Aurigny can focus on its ATR aircraft and keeping them in operation, it would be "much closer to a break-even position."

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