Flybe buffeted by maintenance costs

● Adjusted profit before tax now forecast to come in at £5m-£10m in H1

improvement plan is delivering benefits with the fleet size reducing, and consequently both yield and load factors are increasing. Management remain confident that the group is on a sustainable path to profitability.

“The shares are up 25 per cent since its [first-quarter] results in July, and we expect this morning’s warning to significantly reverse these gains. Our recommendation and target price are under review as we await further guidance at its results on 9 November.”

The Numis analysts added: “Flybe has now launched a review into its maintenance strategy which it hopes will improve its aircraft performance and reduce costs. “However, we conservatively assume that maintenance costs per aircraft remain broadly flat year-on-year in financial year 2019 and await quantitative guidance of the benefits of these initiatives in due course.”

Last month, Flybe said it was launching up to 16 direct flights between Glasgow and London Southend Airport.

The new flights will commence from 29 October with fares costing from £29.99 one way. It is hoped that the direct service will help passengers avoid busier London airports. Southend includes a rail station not far from the terminal.