Flybe profits decline but expansion continues
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 both Birmingham International Airport and 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, the airline 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 exception, integration and restructuring items was £5.7m, compared to £0.1m 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.
It said it had also continued the rationalisation of its fleet, resulting in the airline’s two-aircraft type strategy being completed in May 2009. The fleet now has an average age of less than four years and the year saw an increase in average seats per aircraft of 15.1% since 2007/08.
The company also gained considerable experience of operating in continental Western Europe through a deal in August 2009 with Olympic Air in Greece to start-up the regional operations of the new Olympic Airline.
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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.
“Flybe has a great cost-effective product which is underpinned by consistent delivery of industry leading punctuality. This success is based on fantastic staff, both in the air and on the ground, and a strong and stable management team, who together have implemented a focused strategy with great agility.”
The airline said trading for the first five months of the current financial year, period ending August 31, had been strong, with revenue and profit before tax ahead of the same period last year, before the impact of the Icelandic volcanic ash cloud.
