Flybe cuts back losses thanks to sales leap
REGIONAL AIRLINE Flybe has managed to limit its losses with higher sales and customer numbers during a challenging period for the airline operator.
The firm, which flies from Leeds Bradford and Doncaster Sheffield airports, reported a pre-tax loss of £9.4m for the year to March 31, an improvement on its £48.5m loss the year before.
Group revenue rose 6.4 per cent to £752.6m. Passenger numbers increased from 8.8 million to 9.5 million, a rise of 7.7 per cent.
Flybe was forced to restate its 2017 losses due to an onerous lease provision on one of its aircraft. This resulted in a £28.6m non-cash impairment for 2017, and a £1.3m hit to its 2018 figures.
The company said Europe’s aviation market “continues to be challenging”, with airlines struggling with an oversupply of short-haul flights, higher fuel prices and a weak pound.
Chief executive Christine Ourmieres-Widener said: “Flybe has made significant progress during my first full year as chief executive. With our fleet size under control, we are already delivering improvements to passenger yield, load factors and revenue.
“Profitability has however been impacted by higher maintenance costs, IT investment and the poor weather in the final quarter.”
Flybe said its sales in the first half of the 2019 financial year were encouraging, and that passenger revenue was 1.4 per cent higher year on year so far, with revenue per seat up by 10.9 per cent.
In April, Flybe warned that flight cancellations due to poor weather in February and March were expected to hit full-year results,
A Siberian weather system that forecasters dubbed the ‘Beast from the East’ brought snow, strong winds and the coldest temperatures in several years to many regions. Flybe was particularly affected by the cold spell as its operations are based within the UK and near continent.
The company’s shares rocketed in February when Stobart Group said it was considering a bid for the company. Stobart and Flybe already work together and have a franchise arrangement. However, Stobart walked away in March after the two firms failed to agree terms.
Flybe has made significant progress during my first full year. Christine Ourmieres-Widener, chief executive of Flybe