SCOTTISH Transport Secretary Stephen Flynn has said the SNP Government will not step in with funding after flights serving the Highlands and Islands were cut back.
Last month, Glasgow-based airline Loganair announced plans to scale back some services in the Highlands and Islands, with flights between Inverness and Stornoway, as well as those between Inverness, Orkney, and Shetland, to be reduced from July 19.
The Scottish airliner said that "after reviewing all operational and financial options, we can no longer sustain the current level of service without impacting the wider business”.
The National reported that the airline had requested an additional funding package from the Scottish Government-owned airport manager Highlands and Islands Airports Limited (HIAL), but the full amount requested was not granted and instead a lower offer was made.
A cross-party group of MSPs – the Greens’ Kristopher Leask, the LibDems’ Liam McArthur, Labour’s Donald MacKinnon, and the SNP’s Hannah-Mary Goodlad – then wrote to Flynn calling for action on the “long-term viability and deliverability of vital lifeline routes”.
In a response seen by The National, the Transport Secretary said that the Scottish Government would not be offering any additional funding to keep the services running, adding that “these are commercial services and the Scottish Government has no direct power to intervene in their provision”.
Flynn went on: “Having said that, and as emphasised by the First Minister in Parliament, I want to see [HIAL] and Loganair work collaboratively to ensure that the services can be sustained given their value to local communities and business.
“HIAL and Loganair have met on a number of occasions and I welcome the fact that further dialogue is still to come.
“There is a significant level of public expenditure supporting air services in the Highlands and Islands. In order to ensure that HIAL can continue to operate safe and regulatory compliant airports, supporting connectivity in the Highlands and Islands, we’re making a budget available to HIAL of £52.3 million in 2026-27.
“We also continue to operate the Air Discount Scheme which provides residents of the eligible area with a discount on the core ticket price on eligible routes. In 2025-26 the scheme cost over £14.2m.”
The news comes as the Scottish Government elsewhere confirmed that all flights between the Highlands and Islands and other Scottish airports will be exempt from the Air Departure Tax (ADT) when the devolved levy comes into force next year.
Deputy First Minister and Finance Secretary Jenny Gilruth said extending the exemption to incoming flights to the Highlands and Islands from other locations in Scotland will “improve national connectivity for people and businesses when ADT replaces the UK Government’s Air Passenger Duty on 1 April 2027”.
Under ADT, flights from the Highlands and Islands to airports in the rest of the UK will remain exempt, including via connecting flights.
Gilruth also confirmed the levy will pave the way for the introduction of a Scottish Private Jet tax from April 2028.
The Deputy First Minister said: “This is the latest step in our mission to ensure Scotland’s devolved tax system works for every corner of the country.
“These ADT exemptions recognise the particular connectivity challenges faced by the people and businesses who have made the Highlands and Islands their home, and will help support communities to thrive.
“Our progressive approach to taxation helps the Scottish Government to provide the best cost of living support available in the UK, such as free university tuition, free prescriptions and our plans for a £2 bus fare cap across Scotland.
“A private jet tax will ensure those who contribute significantly higher emissions per person compared to commercial flights will pay more for the privilege.”
