LOGANAIR has posted a rise in turnover and declared that it has addressed the punctuality issues it has suffered in its Highlands and Islands heartland through major investment.

However, the Glasgow-based airline’s operating profits dipped to £5.39 million in the year to March 31, from £5.77m in the prior 12 months.

Turnover increased from £87.3m to £93.6m. Boosted by a £1.68m exceptional gain on aircraft disposal in the year to March 2015, Loganair’s pre-tax profits rose to £7.2m from £5.83m.

Loganair, which operates a total of 31 routes across the UK and runs flights for Flybe under a franchise arrangement as well as for itself, attributed the jump in turnover partly to a 13 per cent rise in passenger numbers on its scheduled services, to 656,036.

Chairman David Harrison highlighted the airline’s ongoing £15m programme of investment, being implemented between April last year and April 2016.

Loganair said this comprised a £4m investment in two, 50-seater Saab 2000 aircraft, £1.5m to buy a 31-seater Dornier 328 turboprop, £3.5m to begin a three-year programme of major passenger upgrades for the “workhorse” of its fleet, the Saab 340, and a £6m investment in a new spares hub at Glasgow Airport.

The airline said this spares hub would carry the most regularly-used parts, emphasising that this would allow “far faster and more efficient servicing and repairs”.

A spokesman for Loganair, which employs about 600 people, said: “There have been some issues with punctuality in the Highlands and Islands. These things have all been addressed now.”

The spokesman highlighted Loganair’s plans to launch an apprenticeship programme, flagging a global shortage of aviation engineers.

Loganair said it had invested heavily in its engineering operation.

It added that it now employed 146 engineers, emphasising that this was more than at any time in its history and nearly twice as many as in 2007. The airline was founded in 1962.

Chief executive Stewart Adams said: “Unlike most airlines worldwide, which benefit from the efficiencies of operating only one aircraft type, our unique route mix means we have five different models from four different manufacturers.”

He added: “This significantly increases the demands on our engineering department and when engineers move on or retire, it has traditionally had a major impact on operations.

“Therefore, engineering recruitment and training has been a major focus in the current year and we will also shortly be launching an apprenticeship programme, aimed at identifying and training our own young engineers at a time of a global skills shortage in the aviation industry.”

Highlighting the rationale for the investment in the spares hub at Glasgow Airport, the Loganair spokesman said: “Previously, a lot of the spares would have to be brought over from Europe. This new investment in the spares hub will mean these things can be turned round much faster.”

Mr Adams highlighted Loganair’s aim of increasing its punctuality performance significantly.

He said: “Our punctuality (figure) for all flights departing within 15 minutes of schedule currently sits at 77 per cent - which is still higher than the UK industry average - but we have set a target of 85 per cent for 2016 as we deliver the benefits of our investments.”

Loganair highlighted its launch of three new routes outwith its “traditional Highlands and Islands heartland”, Norwich to Edinburgh, Dundee to London Stansted, and Glasgow to Manchester.

It noted that, towards the end of 2015, it had launched a further two routes, linking Inverness with Manchester and Dublin.