Budget airline reports growth in passenger numbers

FLYBE has reported that despite a 4% capacity reduction in the fourth quarter to 2.2m seats, passenger volumes grew 6% year-on-year to 1.6m.

The budget airline suggests this is a result of its competitive pricing strategy with higher passenger volumes more than offsetting lower yields, leading to a 4% increase in passenger revenue per seat to £49.80.

It added that forward sales performance for Summer 2014 remains positive, with 20% of seat capacity sold, compared with 17% by the end of March last year.  

Following last year’s cuts the airline – whose largest regional base is Birmingham Airport –  has rebranded and yesterday unveiled a new purple aircraft.

It has also launched a “60:60 guarantee” that gives passengers a £60 credit towards their next flight booked within 60 days if, through the fault of the airline, their flight arrives more than 60 minutes late.

Chief commercial officer Paul Simmons told TheBusinessDesk.com that the airline plans to grow its network after a year of cutbacks.

The Exeter-based business has axed around 1,100 staff, or 40% of its 2,700 employees, and has since raised £150m on the stock market to fund future growth.

Simmons said: “We have finished the organisational changes which we had to do. Unfortunately a large number of people ended up leaving the company but we knew we now have a thinner, leaner organisation.

“The analysts’ consensus is we’ll break even or make a small profit this year, from a £40m loss last year and we’ve managed to stabilise and raise capital in the City.”

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