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Guernsey's government-owned airline Aurigny is predicted to record losses of £9.6m in 2020.

In its budget for 2020, the States of Guernsey has said it expects Aurigny's losses to rise from £7m if it continues as it is.

Any losses at the state-subsidised airline are a direct cost to the government and the taxpayer.

The Policy and Resources Committee has called for departments to work together to find a sustainable strategy.

At present, Aurigny provides the only airline service to the island of Alderney and the States predicts an increase in losses if the airline continue to operate this route unsubsidised.

Deputy Gavin St Pier, President of the Policy and Resources Committee, said: "A lack of coordination has arguably resulted, at least in part, to significant losses for Aurigny which the taxpayer has to cover.

"This is not sustainable and we need to bring together all areas of government with responsibility for various aspects of our air links strategy so we are working as one."

The forecast includes an operating loss of £8.6m in 2020 and a "potential £1m loss on the disposal of the two Dornier Classic aircraft".

A spokeswoman for the airline said: "With no certainty or stability in the airline market at present... Aurigny look forward to working with the States to develop a sustainable air transport policy."