UK’s Flybe posts £6.7m adjusted loss
SHARES in UK regional carrier Flybe jumped 5pc in early trading yesterday after it reported full-year figures that were in line with expectations.
The airline, headed by former CityJet boss Christine Ourmieres-Widener, posted an adjusted pre-tax loss of £6.7m (€7.7m) loss, compared to a £5.5m profit in the previous financial year. Its reported loss in the latest period was £26.7m. Revenue rose 13.4pc to £707.4m (€815.8m).
It confirmed that its fleet size is now at its peak, and that it will contract during the remainder of 2017 and into 2018.
The airline said that its loss for the year came after it included a £4.8m writedown related to its IT systems, and that it will incur another £6m in IT costs in the current financial year relating to cancellation penalties on existing contracts.
Its passenger yield in the year to the end of March was flat at £70.20, while its load factor fell three percentage points to 69.3pc, reflecting a 12.3pc increase in capacity.
Flybe saw its capacity increase to 12.7 million available seats in the last financial year as its fleet size increased as a result of legacy commitments to acquire aircraft. Passenger numbers rose 7.6pc to 8.8 million. This year, Flybe will return six end-of-lease Q400s.
“This will enable Flybe to become a more customer centric business and for the first time concentrate the business on profitable routes,” it said.
“Becoming a truly demand and customer-focused business is the key plank of our strategy.”
The company also has a franchise deal with Stobart Air, which operates the Aer Lingus Regional service.