Flybe shares take off as it confirms Virgin Atlantic talks

Flybe, the largest airline in terms of passenger volumes at Birmingham Airport,  has confirmed it is in talks with Virgin Atlantic about a potential takeover bid.

The news sent the struggling airline’s shares soaring this morning, and by 12.30pm were trading up 55% at 15p.  However it still has a lot of lost ground to make up, having been above 40p in mid-September.

Earlier this month, Flybe put itself up for sale just weeks after issuing a profit warning.

The airline said it was undertaking a comprehensive review of various options to address the “current challenges facing the airline industry”, one of which was a potential sale of the business.

In October, it warned full-year losses would be £22m, blaming falling consumer demand, a weaker pound and higher fuel costs.