An airline that operates passenger services between the Scottish mainland and islands has posted a drop in profits.

Hebridean Air Services, described as Britain's smallest scheduled airline, reported a drop in profits of almost half.

The Inverness-registered airline, which has a base in Oban and is owned by Airtask Group in Milton Keynes, posted an increase in turnover.

The airline operates services from Oban to islands such as Coll, Tiree and Colonsay including routes subsidised by Argyll and Bute Council.

It reported turnover for the year ending March 2023 at £656,106, compared to £623,072 the year before.

The Herald: Hebridean Air Services is based in InvernessHebridean Air Services is based in Inverness (Image: Highlands and Islands Airports)

However, Hebridean Air Services also posted a £66,266 operating profit for the same period, against £112,514 the previous time.

Profit after tax was £55,824, compared to £92,557 the year before, according to Companies House.

The accounts showed Hebridean Air Services, which has three employees, is owed £1.3m, which was the same as the year before, while it owed £166,177, up from £149,684.

READ MORE: Airline launches three new routes from Scottish airport

The Herald told earlier that the airline ended services to a famous Scottish island because of low passenger numbers.

The airline operates services from Oban to islands such as Coll, Tiree and Colonsay including routes subsidised by Argyll and Bute Council.

The route to Islay, famed for its natural beauty and whisky heritage, was not subsidised. Hebridean Air Services took over the contract after Highland Airways ceased trading in 2010.

The Herald: Tiree is one of the islands served by Hebridean Air ServicesTiree is one of the islands served by Hebridean Air Services (Image: Getty Images)

The airline said earlier the Islay route was introduced and integrated into the scheduled routing with the flights to the Island of Colonsay but operated "on a strictly commercial basis".

READ MORE: Hebridean Air Services ends island service

The parent company Airtask Group saw its turnover increase from £6.2m to £6.4m over the same period, with a profit before tax of £371,788, against £346,350 the previous year.

Profit after tax was £320,247 set against £172,789.

Airtask was owed £876,386 at March 2023, against £807,253 at the same time the previous year.

The group owed £1m to creditors, compared with £851,128 at the same stage the year before.

READ MORE: Islanders call for flights funding

Airtask Group, set up in 1983, said that it provides "bespoke mission-based aviation solutions to government and commercial clients around the world", adding: "We pride ourselves on the high quality delivery of turnkey operational and technical solutions, tailoring solutions to each customer's individual needs, whilst ensuring comprehensive customer care.

"We offer a broad range of services available from a team of dedicated directors, managers and highly experienced pilots and cabin crew."

According to Airtask company information, it operates ten aircraft. It has 14 staff at its Cranfield Airport base, and a further 43 people based around the UK.

Airtask currently operates services including atmospheric research, fisheries patrol and military training as well as passenger carriage.

It also operates the Shetland Island Council Inter Island Air Service, using two nine-seater aircraft based at Tingwall Airport, flying schedule flights to Foula, Fair Isle, Out Skerries and Papa Stour.

Hebridean Air Services was founded in 1995.