Flybe’s earnings hit by economic turbulence

FLYBE, Europe’s largest regional airline, has reported a near halving of annual pre-tax profits.

The airline, the largest in terms of traffic movement at Manchester Airport, saw the figure fall from £12.8m in 2008-09 to £6.8m for the year ended March 31, 2010.

Nevertheless, the company said it was pleased with the performance and the airline was only one of three European operators to see a profit during the recession.

In an update on current trading, it said it had maintained progress through the summer and was on course to implement expansion plans across continental Western Europe.

Turnover for the year was maintained at £570.5m, only slightly down on the previous year’s £572.4m, while profit before tax, after exceptional, integration and restructuring items was £5.7m, compared to £100,000 last year.

Ancillary revenues per passenger increased by 15.9% to £11.98 per passenger, up from £10.34 last year, while operating cash before restructuring totalled £50.9m, compared with £31.4m in 2008-09. Net debt more than halved from £49.8m to £21m.

Flybe said it had achieved market leadership for its core UK target sector, and had flown 7.2m passengers, compared with 7.3m during the previous year.

Jim French, chairman and chief executive, said: “Against a backdrop of the continued impact of the recession and the effects of extreme volatility in fuel prices, Flybe grew its market share to become Europe’s largest regional airline and the UK’s largest domestic airline whilst also being one of only three major European airlines that have reported profits throughout the recession.”