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.
- 1 Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...