Flybe makes progress in tough trading conditions

New chief maintains there are firm foundations to develop business

Regional airline Flybe, which is ending its services from Dundee, announced a “solid” third-quarter performance in tough trading conditions.

It has axed its Dundee-Amsterdam service and is not renewing its franchise arrangement with Loganair for flights to London Stansted, although Loganair is bidding to take over that service on its own.

Flybe reported a 13.5% rise in passenger revenue for the three months to December 31 at £146.3 million by deploying previously committed capacity.

The added capacity and tough trading conditions resulted in the load factor – the number of sold seats – being down 1.7 percentage points to 67.2%. The pace of decline slowed compared with the first half.

Passenger numbers were up 9.9% at 2.1 million and total UK revenue, including from contract flying and other sources, was up 18.1% at £160.8m.

Passenger yield – the revenue after deducting government taxes and levies – was up 2.8% at £69.53m.

Four additional Q400 aircraft were added during the quarter, and the final four will be delivered in the last quarter.

Flybe said UK connectivity will be increased with new routes between Edinburgh, Aberdeen and London Heathrow starting in March.

They will allow connections with codeshare partners including Etihad, Singapore Airlines and Virgin Atlantic as well as connections with other airlines.

Christine Ourmieres-Widener, the recently appointed chief executive, said: “Everything I have seen so far confirms my excitement at the opportunity we have to become the best regional airline in Europe.

“There is much to be done, but we have the firm foundations needed to develop the business.

“My first priority is to look to rebuild passenger unit revenue and to challenge all our costs. This will be assisted by Flybe becoming an even more customerfocused business as we achieve greater control over our fleet size.”

Flybe formally ended its DundeeAmsterdam service this month, although it had operated it from Edinburgh for several weeks.

It bussed passengers up and down the M90 because of “issues with radar coverage” at Dundee.

Dundee Airport owner HIAL is trying to find another airline to take over the route, which receives a Government subsidy.

Loganair wants to fly the Stansted route from August if it can secure its Public Service Obligation subsidy.

Picture: Kris Miller. A Flybe plane at Dundee Airport. The regional airline, which is ending its services from Dundee, announced a “solid” third-quarter performance.