Partly Cloudy

Partly Cloudy

max temp: 7°C

min temp: 1°C

ESTD 1874 Search

East Anglia: Airline Flybe posts its first annual profit for four years

16:08 11 June 2014

Flybe

Flybe's new purple livery on a Bombardier Q400 Dash 8 aircraft.

© Theo Moye. All Rights Reserved

Regional airline Flybe today celebrated its first profit in four years after its turnaround strategy was boosted by a rise in passenger numbers.

shares

Flybe, which serves 35 UK airports including Norwich and Southend, posted bottom-line profits of £8.1million for the year to March 31, compared with a loss of £41.1m a year earlier.

Chief executive Saad Hammad said the figures marked the “rebirth of Flybe” after a restructuring that has seen the loss of 1,100 jobs and a 1.4% reduction in capacity as it moves to shed loss-making routes.

It carried a record 7.7m passengers on its UK scheduled services during the year, a rise of 6.9% as it benefited from fare promotions and better routes.

Flybe also reported an improvement in passenger revenues per seat of 1.8% to £49.70, while its share of UK regional market grew to 55.1% from 52.4%.

The airline recently announced five new routes from London City airport and a complete relaunch of the Flybe brand although some further job losses are still likely after this summer as seasonal routes are discontinued and aircraft grounded.

However, the airline added: “We believe that we are now on the verge of emerging from this period of retrenchment, and looking forward to future considered and careful profitable growth.”

The group has regional bases in Belfast, Birmingham, Edinburgh, Exeter, Glasgow, Manchester and Southampton, having closed six others in the past year as part of its turnaround strategy.

It also has a “white label” business with Finland’s Finnair, where it flies planes under the Finnish airline’s livery and which posted a profit before tax of £6.3m, compared with £4.6m a year ago.

The group added that it was discussions with other major carriers about expanding its white label joint ventures.

Group revenue was 1% up on the previous year, at £620.5m, and total reveue under management, including the joint venture in Finalnd, was 11.1% higher, at £781.5m.

Flybe added today that it was a “source of amazement” that Air Passenger Duty (APD) continued to result in a typical domestic flight being charged five times the tax per mile of a long-haul one.

Chairman Simon Laffin said: “This is exacerbated when a return international flight suffers this charge once, but a domestic one is taxed twice. Yet in the last Budget, the Government actually reduced long-haul APD rates by £1 billion, while informing Flybe that it could not afford to reduce domestic rates.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Project manager needed for construction industry

Searching for a new job? See details of Suffolk’s top paid vacancies here.

Beardmore Park.
lings

The relocation of a Martlesham garden centre, which had been facing closure, could pave the way for Marks and Spencer to expand its neighbouring store significantly.

Greene King has reported increased sales across its businesses for the first 40 weeks of its current year.

Pubs and brewing group Greene King today reported continued growth across its businesses, helped by “record trading” on Christmas Day.

The Port of Felixstowe is to offer a container-weighing service to exporters.

The Port of Felixstowe is to launch a container weighing service to help UK shippers comply with new international regulations due to come into effect on July 1.

The Visit East Anglia stand at the Vakantiebeurs tourism exhibition in Utrecht.

Visit East Anglia (VEA) has launched a promotion to attract more Dutch visitors following a successful bid under the Government’s GREAT UK Challenge Fund.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24