Flybe takes off

DUNDEE AIRPORT flyer Flybe has returned to growth in seat capacity and revenue.

The airline that operates the heavily subsidised Dundee route to London Stansted and wants to start a service to Amsterdam reported progress in the final quarter of last year in its overall results.

The performance completed the first year of its three-year turnaround, and the company believed it was well set to continue the positive momentum.

CEO Saad Hammad said Flybe was beginning to deliver on growth opportunities and had tackled the majority of legacy issues.

He continued: “There is clearly more to do: further improvements in efficiency, further cost reductions, and the resolution of our remaining surplus aircraft.

“However, one year into our turnaround we have a clear line of sight towards profitable growth.”

The airline delivered 15% additional capacity in the final quarter of 2014/15 but held its load factor constant at 70% and delivered 15% passenger growth.

Overall passenger revenues increased by more than 5%.

In the first quarter of 2015/16 Flybe reported a 9% increase in passenger revenue and a 13% increase in capacity compared with the same period last year.

The company has already sold 31% of capacity, two percentage points behind last year when the Easter weekend was at a different time.

Flybe’s new routes at London City were showing promising progress.

The airline was also confident about its white label agreement with SAS Scandinavia, and its eight-year contract with Airbus for the maintenance of the RAF’s fleet of 22 turboprop airlifters at Brize Norton.

During the year the airline exited its lossmaking joint venture with Finnair, and also exited a £670 million obligation to buy 24 additional E175 jets from Embraer, with an agreement to secure attractively-priced turbo-prop Q400s

It also found solutions for seven of its surplus 14 E195 jets, including a new agreement with Cardiff Airport, and the airline is in discussions to find a permanent solution for the remaining jets.

Results for the full year to March 31, to be announced on June 10, are anticipated to be in line with market expectations, with Flybe on track to achieve around breakeven at pre-tax profit level.

The outturn would be an improvement of £14m on the previous year’s loss of £9m on a comparable basis, excluding the one-off effects of the Finland divestment, US dollar loan revaluations and last year’s restructuring costs, together with the benef its from the sale of Gatwick slots. business@thecourier.co.uk

Picture: Theo Moyes. Flybe said that one year into its turnaround, with increases in revenue and seat capacity, it has a clear line of sight towards profitable growth.