Flybe in the red after tough year
Monday 11 June 2012
Regional airline Flybe slumped to a "disappointing" full-year loss today despite growing its share of the declining UK passenger market.
It racked up losses in the UK of £2.2 million for the year to the end of March, compared to profits of £5.7 million the previous year, as it battled a 5% decline in the domestic market and high fuel prices.
But the carrier, which operates from 14 UK bases serving 102 airports in the UK and 17 other European countries, grew its share of its domestic market to 28% after passenger numbers lifted 2% to 7.3 million.
Its shares rose 5% as the group's underlying losses came in slightly lower than expected and analysts said it is set to benefit from recent falls in oil prices and any recovery in its markets.
Flybe Finland, the company's joint venture with Finnair started nearly a year ago, already operates 25 routes in six countries and has scope for further expansion amid consolidation in the industry.
Losses for the group were £7.1 million, compared to a £22.3 million profit in the previous year.
Chief executive Jim French said: "We remain in a challenging environment. However, Flybe today is a business of real scale and substance and one which has again demonstrated its resilience."
Flybe's forward ticket sales for the summer were up 4.5% on broadly flat seat capacity.
It said it has moved quickly to capitalise on BMI Baby's announcement that it will stop eight of its routes from East Midlands Airport by announcing several new services of its own.
A quarter of its passengers are now carried between the UK and Europe and it believes the recent strengthening of the pound may encourage more holiday makers to use its services.
Andrew Fitchie, an analyst at Investec, said the company's drive to contain costs while investing in its fleet and expand overseas will "pay off handsomely" given time.
He revised up his forecasts, saying he expects the airline to return to profit in the current year, with a £500,000 surplus compared to his previous estimate of a £1.3 million loss.
Apple has been hit by complaints about the 1.1GB download
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...