States-owned airline Aurigny made £3m surplus in 2022

CEO Nico Bezuidenhout said the surplus was down to "reducing costs" and carrying more passengers

Aurigny is in profit for the third time since the States of Guernsey bought the airline in 2003.

The company made £3m in surplus last year, having been forecast to deliver a £1m deficit.

Its accumulated debts have twice been written off by the island's government - in 2015 and again in 2021.

The company's CEO Nico Bezuidenhout said the surplus was down to "reducing costs" and carrying more passengers.

"The thing that makes me happiest is we have managed to achieve this position without increasing air fares in real terms," he said.

Nico Bezuidenhout said to "watch this space" regarding potential flights to Paris in the future

Mr Bezuidenhout said he expected the company to break even in 2023, but warned it would not mean air fares would go down.

He said: "Halfway through 2023 we are materially above budget, bearing in mind though, Aurigny is not meant to make massive profits, whenever we get to a profitable position we try and discount fares and keep fare levels as low as possible.

"What you can bet on is our fare increases won't be as high as the levels of inflation we are seeing."

In 2022, Aurigny reduced the size of its fleet, selling off one of its old Dornier aircrafts and an ATR-500.

• States votes to write off Aurigny debts

• Aurigny outlines plans to 'cut losses by 2023'

• Airline cost taxpayers nearly £10m in 2019

Using the new planes more efficiently is one of the factors Mr Bezuidenhout is citing in how the company has managed to keep costs down.

"We've also had a reduction in staff costs because of increased efficiency, but the real gain has been from our asset productivity," he said.

He also urged deputies to stick with their decision to rebuild and extend Alderney's airport to allow the airline to fly bigger planes into the island.

He said: "This will ultimately lead to less money being picked up by the taxpayer, a million pounds per year, alongside more resilience for the people of Alderney."

Mr Bezuidenhout said to "watch this space" regarding potential flights to Paris in the future.

"Last year we served our largest network ever in 54 years.

"Fifteen European destinations last year and we will continue this into next year, but we are looking at what we can get more regular services into places like France."

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