Flybe profits take a nosedive after surging maintenance costs
REGIONAL AIRLINE Flybe has revealed half-year profits nearly halved after it was hit by higherthan-expected aircraft maintenance and IT costs.
The firm, which warned over interim earnings last month, posted underlying pre-tax profits of £8.4m for the six months to September 30, down from £15.9m a year earlier.
The carrier’s results were knocked by a drive to improve the reliability of its planes, in particular the Bombardier Q400 turboprop, as well as additional IT costs of £6m linked to the development of a new digital platform, while the weak pound also took its toll.
Chief executive Christine Ourmieres-Widener said: “While half-year profits are lower than last year, due to the one-off IT contract costs, higher maintenance expenses and the impact of the fall in the value of sterling, I am confident that we are on a clear path to sustainable profitability through the investments and improvements we are making at Flybe.”
She added the group would focus in its second half on improving its cost base and reliability performance, as well as ploughing on with investment in its new online system.
But Flybe – which carries around 8.8 million passengers across 199 scheduled routes – warned the European airline market remains “challenging”.
Half-year figures showed it has slowed its UK seat capacity, with growth pairing back to 3 per cent, while passenger numbers rose 8.8 per cent to 5.2 million.
Its load factor – a key measure of how well it fills its planes – improved as a result, to 76 from 72 per cent a year earlier. Flybe said trading remained “encouraging” in the start of the second half.