Channel Islands airline Aurigny boss says prices may rise

The state-subsidised airline's plans could see the end to the use of its Embraer jet

Channel Islands airline Aurigny's CEO has warned ticket prices could increase because of the global cost of oil.

Nico Bezuidenhout said he "could see £2 to £4 increases in average ticket prices being quite realistically accepted".

He told politicians his two biggest concerns for the company at the current time were "petrol prices" and peoples' "lack of disposable income".

The States-owned airline is projected to make a £13.5m loss for 2021.

Last year the States approved a strategy aimed at bringing the airline back into profitability.

Mr Bezuidenhout said while he did not expect to turn a profit in 2022 he was hopeful for a marginal profit in 2023.

Mr Bezuidenhout said: "We're seeing decade-high oil prices and you can see £2 to £4 increases in average ticket prices being quite realistically accepted".

He told politicians and the media at an update on the airline's performance that a lot of the chances of future profits rely on simplifying the airline's fleet.

In about two months a review of whether the airline should keep the Embraer jet will be complete and Mr Bezuidenhout said he believed if it was removed from Aurigny's fleet it would save the company £700,000 a year.

New interlinking - or code sharing agreements - are set to start with British Airways and Emirates soon, which Mr Bezuidenhout said would "help customers with onward travel".

The airline's CEO also signalled his support for the extension of Alderney's runway as it would allow ATR-600s to land there.

However, Mr Bezuidenhout said he remained neutral on the issue of extending Guernsey's runway, which is set to be debated by the States later this year.

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