Aurigny projected to make a £5m loss in 2026

Guernsey's States-owned airline Aurigny will make a £5m loss this year, the politician responsible for the oversight has estimated.

States Trading Supervisory Board President Mark Helyar blamed the "cannibalisation" of passenger numbers to London by British Airway's new Heathrow route, which launched on 19 April.

Aurigny said it had consistently stated a new Heathrow route from a competitor would "have a materially negative impact on the airline's own passenger revenues to and from London". It also said it was not going to provide a "running commentary" on revenue.

The Committee for Economic Development (ED), which supported the launch of the Heathrow route, has been contacted for comment.

In a statement, the airline said: "Aurigny neither has the intention nor the authority to provide a running commentary on revenue and financial performance throughout the year."

During a series of questions from States members, following an update by Deputy Helyar to the States Assembly, Helyar said: "The new daily Heathrow service is clearly positive for connectivity.

"But additional capacity into London, especially on a route which is central to Aurigny's business, will affect Aurigny's London services and may have knock‑on effects for other routes such as Southampton, and, in turn, will generate financial losses in a publicly-owned business."

During the question and answer session in Guernsey's States, Economic Development (ED) President Sasha Kazantseva-Miller said Aurigny did not have a published schedule of flights from October.

She said the lack of forward bookings could be down to flights not being available from after November onwards, something Helyar agreed with.

Helyar added: "If Aurigny is to be required to break even, it may have to cut something to do that.

"This could include Gatwick. The whole reason Aurigny was purchased was because British Airways left the island.

"We now need to land a new air policy to see what the Aurigny board can do protect itself."

ED has not revealed what financial support has been provided to British Airways to facilitate the new route.

The committee has also confirmed it was working on a new air policy framework.

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