Airline soars into profit as turnaround plan takes effect
A THREE-YEAR transformation plan at Flybe has had a big impact on its performance as it increased passenger numbers and returned to profit.
The airline lost £25m in its previous financial year but the second year of its turnaround – the 12 months to March – saw it generate adjusted pre-tax profits of £5.5m.
Flybe’s chief executive Saad Hammad said: “This year was the second full year of our three-year transformation plan and our performance has been very encouraging. We achieved profitability for the first time as a public company, following losses in every year since Flybe’s stock market flotation in 2010.”
It increased its seat capacity by nearly 10%, helped by two new bases in Cardiff and Doncaster and the addition of 52 routes and increased frequencies on 47 other routes. These factors were behind an 8.7% increase in revenues to £623.8m.
Flybe also continued to manage costs, reducing its cost per seat by 2.2%, excluding fuel, and improving its punctuality.
Mr Hammad added: “As a result of all the action we have taken, Flybe is now a much more resilient business and well positioned for profitable growth.
“As we enter the final year of our turnaround, we have set down strong foundations for the future and made good progress in transforming Flybe into a sustainable, world-class regional European airline.”
However the airline warned that it “remains challenging”, highlighting the threats from terrorist activity, industrial unrest in France – a market which accounts for around one-in-eight of Flybe’s seats – consumer uncertainty and competition in the European short-haul market.
