Loganair said its finances would be affected by a series of one-off costs following the end of the Flybe agreement, including rebranding, creating a new reservations system and bookable website, plus a contact centre at Glasgow airport.

The warning came as Loganair revealed that its pre-tax profit for the pervious financial year dropped by 11% to £3 million for the 12 months ending on March 31, 2017.

This fall in profit came despite an 8% increase in turnover to £103 million as passenger numbers rose by 8.6% to 765,000 during the 2016-17 financial year.

Loganair’s managing director Jonathan Hinkles said the carrier had made “a successful transition from franchise partner to operating under our own brand.

“We now have the freedom to implement new initiatives to make travel more convenient and affordable for our customers, and we have abolished credit card payment surcharges, introduced earlier opening of online check-in and removed ID checks at boarding gates,” added Hinkles.

“We have also relaunched a codeshare agreement with British Airways, connecting our passengers to short and long-haul flights, and entered into an agreement with easyJet, which allows our flights to be marketed on that company’s website.”