> ## Content Index > Fetch the complete content index at: https://www.thequarry.media/llms.txt > Use this file to discover other available public pages before exploring further. # Aurigny forecasts £15m loss over two years - sets out actions to reduce costs - URL: https://www.thequarry.media/aurigny-forecasts-15m-loss-over-two-years-sets-out-actions-to-reduce-costs/ - Published: 2026-10-06T13:51:12.000Z - Updated: 2026-10-06T13:51:12.000Z - Author: The Quarry - Tags: News - Aurigny expects to report more than £15m losses over 2026 and 2027 - Main pressures include fuel costs up more than 50 per cent, taking over Blue Islands' routes, and competition from the new Heathrow service - The airline has carried a record number of passengers while keeping average fares around 15 per cent lower than last year - Aurigny has reduced costs by ending wet-lease contracts, retiring Dornier aircraft and matching capacity to demand - Summer 2027 schedule includes extended airport opening hours four days a week, allowing nearly 7,100 flights with five aircraft — a 15 per cent productivity improvement Listen to this article 0:00 /0 1× Aurigny has set out the cost-saving measures it has taken during 2026 and the further steps planned for 2027 as it works to protect Guernsey's lifeline air links through what is says is one of the most difficult years the airline industry has faced in recent times. The 2027 Budget makes provisions of £9.7m in 2026 and £5.7m in 2027 for losses, although says there are based on broad assumptions and not agreed budgets. The airline has now placed its full summer 2027 schedule on sale. Aurigny says that the main factors driving this year's losses include a sharp rise in fuel prices following the conflict in Iran, stepping in after Blue Islands, softer travel demand on parts of Guernsey's route network and the impact of the new Guernsey-London Heathrow service. Uncertainty remains around future demand and fuel prices, while a relatively small market such as Guernsey is also highly sensitive to changes in the competitive setting, and the balance between supply and demand is easily upset. Jet fuel prices have risen sharply in 2026 and remained high. The International Air Transport Association expects airlines' combined fuel bill to rise by around $98 billion this year, with jet fuel averaging $152 a barrel, almost 70 per cent higher than in 2025\. Airlines have responded by cutting flights — more than 150,000 international flights were removed from schedules worldwide between March and June — as well as introducing fuel surcharges, raising fares and retiring older aircraft. UK regional routes have been among the hardest hit. The Dundee-London Heathrow and Newquay-London Gatwick services have been withdrawn, flights from Manchester to Exeter and Southampton have been suspended, and lifeline services to Scotland's Northern Isles were reduced while further public funding was sought. Against this backdrop, Aurigny says it has carried a record number of passengers, delivered strong operational performance across its UK and European ATR network, and kept the Bailiwick's lifeline routes running reliably, supporting the local economy every day. Average fares were around 15 per cent lower than last year. Kevin George, chairman of Aurigny's board, said: "Keeping Guernsey connected is a responsibility we take extremely seriously, and so is running the airline as efficiently as possible." "This has been an exceptionally tough year for airlines everywhere, and Aurigny has not been immune. "We have acted decisively to control costs throughout 2026, and the reduced loss we are planning for 2027 shows that this work is starting to take effect. "The business has managed to deliver profitability in successive years after the COVID pandemic, and while the current conditions are not conducive to positive financial results, we are determined in our resolve to deliver reliable and efficient air services to Guernsey, notwithstanding the challenging conditions." Aurigny's fuel costs are up more than 50 per cent from last year. Its standardised ATR fleet has helped to limit the impact, but in keeping with its community mandate, Aurigny has not passed the full increase on to passengers or withdrawn routes, as many other airlines have done. Aurigny immediately took over the Jersey-Guernsey lifeline route and added a Southampton frequency when Blue Islands ended its Guernsey services. The extra revenue associated with these services came with the cost of an additional ATR72-600, its crews and Southampton ground staff, and one-off costs of scaling up quickly. A significant number of passengers have moved to the new Heathrow route operated by British Airways. This additional capacity, supported by contracted subsidies and preferential airport charges not available to Aurigny, has put sustained pressure on Aurigny's London revenues and reduced demand on its Southampton and, to a lesser extent, Birmingham services. London services have, historically, accounted for more than 50 per cent of Aurigny's revenues. The results of stepping in have been positive. On the inter-island route, lower fares have reversed years of decline, with passenger numbers up more than 10 per cent year on year, and both the Jersey and Guernsey Chambers of Commerce have welcomed the improvement, including much better reliability. On the Guernsey-Southampton route, where Aurigny is now the sole operator, punctuality has improved by six percentage points, the lowest fares have consistently been below those available between Jersey and Southampton, and 15 per cent more people now travel between Southampton and Guernsey than between Southampton and Jersey, up from 6 per cent more last year. Nico Bezuidenhout, chief executive of Aurigny, said: "We have spent the last two years rebuilding the service reliability of our core UK network, and our punctuality rate is again on par with or better than other carriers. "We have simplified our fleet, and we are nearing completion of a material engine overhaul investment cycle of our owned ATR fleet, which supports improved fuel efficiency and further increases reliability." Throughout 2026, Aurigny has actively reduced costs. Improved reliability across the ATR network has allowed Aurigny to almost entirely stop hiring aircraft and crews on short-term ACMI (wet-lease) contracts, with the last ACMI wet-lease flight occurring on 2nd April 2026. Demand softened after the conflict in Iran began and fuel prices rose. Like other airlines, Aurigny temporarily reduced capacity between April and June, because flying at low load factors would have deepened losses. Aurigny has retired its two Dornier 228NG aircraft from the Alderney routes, partly because their maintenance costs had become unsustainable. The Skybus Twin Otters now operating these services cost less to run and put Alderney's air links on a sustainable footing. The second of two re-built Twin Otters dedicated to the Alderney operations will enter service by the end of October, while Aurigny will continue to have access to Skybus' broader fleet of Twin Otter aircraft. Aurigny's summer 2027 programme is on sale from today, with the full Guernsey and Alderney schedule available to book for travel up to 30th September 2027. The schedule follows a thorough review of the airline's operating model and constructive engagement with Guernsey Ports. On four days a week during the summer, Guernsey Airport will remain open for Aurigny until 22:30 local time rather than 21:00, allowing later evening arrivals from London Gatwick, Manchester and Southampton. The longer operating day makes better use of aircraft, crews and ground services, as well as of the existing investment in Guernsey Airport's infrastructure. Aurigny will operate nearly 7,100 flights in summer 2027 with five ATR72-600 aircraft — a productivity improvement of around 15 per cent that helps to lower costs and, ultimately, fares. The schedule also provides a dedicated standby aircraft throughout the summer, giving Aurigny the highest standby-to-operating-aircraft ratio of any UK airline. Standby cover adds cost, but it is essential given the remote nature of island operations and Guernsey's often challenging weather. Together with the longer airport opening hours, it gives the airline more room to recover from the disruption that all airlines face. Mr Bezuidenhout concluded: "We will continue to address our cost base and are already laying the foundations for the structural cost reductions the business needs to survive in a volatile and uncertain environment. We will work closely with the STSB to review our operating model, so Guernsey has a sustainable airline for the long term." ## Q&A **Q: Why is Aurigny expecting significant losses in 2026?** A: The main factors are a sharp rise in fuel prices following the conflict in Iran (costs up more than 50 per cent), stepping in after Blue Islands ended its Guernsey services, softer travel demand on parts of the route network, and the impact of the new Guernsey-London Heathrow service on existing London revenues. **Q: What cost-saving measures has Aurigny taken during 2026?** A: Aurigny has almost entirely stopped hiring aircraft and crews on short-term wet-lease contracts (last one on 2nd April 2026), temporarily reduced capacity between April and June to match softer demand, and retired its two Dornier 228NG aircraft from Alderney routes, replacing them with lower-cost Skybus Twin Otters. **Q: What changes are coming in the summer 2027 schedule?** A: Guernsey Airport will remain open until 22:30 rather than 21:00 on four days a week during summer, allowing later evening arrivals from London Gatwick, Manchester and Southampton. Aurigny will operate nearly 7,100 flights with five ATR72-600 aircraft, a productivity improvement of around 15 per cent, and will maintain a dedicated standby aircraft throughout the summer.