Flybe transformation ‘on course’

FLYBE – one of the biggest airline operators by volume at Manchester Airport – has said it has resolved “nearly all of the company’s legacy issues” as it announced an upbeat review of the first of its three-year transformation plan.

However restructuring costs impacted on its bottom line, and it recorded a pre-tax loss of £35.6m.

Chief executive Saad Hammad said “there is much more to do” but was pleased with the impact of the changes that have been made.

Those included exiting its loss-making joint venture with Finnair and replaced a £580m agreement to buy 24 additional E175 jets from Embraer.

Flybe maintained its passenger numbers at 7.7m for the year to March, but increased its load factor by 5.7 percentage points to 75.2% – an annual all-time high – and also increased its revenue per seat by 3.3% to £51.35.

“Despite a more challenging environment than anticipated, significant progress has been made,” said Mr Hammad. “Flybe is back on track to recovery and profitable growth.”

Flybe UK, which operates 22 routes from Leeds Bradford Airport, saw revenues fall by nearly £50m to £551m.

This resulted from discounting under-performing routes, a reduction in unprofitable charter operations.