Highlands and Islands Airports Ltd (HIAL) has published its latest annual report and accounts for the financial year 2024/25.
An ongoing commitment to generating commercial income, rigorously managing business and operational costs, and driving efficiency has led to substantial financial savings against a challenging financial backdrop. This approach has enabled public funding to be reallocated to other areas by the Scottish Government.
During the year, HIAL received a public subsidy of £47,977,000 including revenue funding of £34,873,000 and £12,717,000 capital funding which was supplemented by £387,000 of capital loan funding for commercial activities.
Passenger numbers remained steady at just under 1.5million across all 11 of HIAL’s airports, which was an increase of 3,000 passengers on the previous year. Figures remained at 88% of pre-pandemic passengers levels at the end of March 2025.
During the financial year, HIAL delivered an extensive capital programme with over £13million invested to maintain, modernise and improve airport infrastructure. This capital investment was spread across all airports and HIAL Head Office with a focus on maintaining safe and regulatory compliant operations. Activity included runway works at Islay and Kirkwall and replacement of security infrastructure and equipment at Dundee, Inverness, Islay and Stornoway.
In her last annual report before she stands down as Chair of the Board, Lorna Jack said, “It has been a privilege to serve the HIAL Board and the communities of the Highlands and Islands for over 11 years.
“A constant throughout my tenure has been the continued dedication of colleagues across all 11 airports and Head Office and the friendly and professional customer service they provide.
“We have continued to face financial pressures and colleagues embraced the challenge to play a major role in helping drive efficiencies and identify cost reductions. This has allowed us to realise savings and return a material proportion of the grant subsidy offered by Transport Scotland for the last three financial years, playing our part in easing the burden on the public purse.
“I would like to thank colleagues right across the organisation, from our front-line teams at our airports to the support and head office teams, for their commitment and passion in the service
“I would also like to pay tribute and express my deep thanks to my Board colleagues and members of the Strategic Leadership Team, both past and present, for their service and dedication over the years.
“HIAL’s airports are an essential element of Scotland’s transport network, and while there will be challenging times ahead, I have no doubt that my successor will meet those challenges with the same quality and high-level support from Board members and colleagues throughout the Company.”
The Annual Reports and Accounts are available in English and in Gaelic