Stobart Group running rule over Flybe for bid

Shares in Flybe soared after London Southend Airport owner Stobart Group said it was mulling a swoop for the regional airline.

Flybe closed up by 36.2 per cent to 47p on the London Stock Exchange, with Stobart Group eyeing a tie-up as it searches out “alternative structures” for its airline and leasing business.

Stobart Group, which spans infrastructure, energy and aviation, said one option was to take a “non-controlling interest in a vehicle to acquire 100 per cent of Flybe”. However, it cautioned that there was no guarantee a firm offer will be made.

Flybe has been grappling with an IT overhaul and efforts to drive down costs, with halfyear profits nearly halving at £8.4 million when it updated the market in November. However, revenues climbed 8.5 per cent to £158.8m in the third quarter.

Shares in Stobart Group closed up by 2.2 per cent to 255.5p following the news.