Article from BTNews 13 JUNE 2016
Flybe into profit
Exeter-based Flybe made a profit of £2.7m (£35.6m loss previously) in its April-March financial year, but warned that “The current industry environment remains challenging, however, for a number of reasons. These include the threat of terrorist activity, industrial unrest in France which accounts for 12% of Flybe’s seat capacity, consumer uncertainty fuelled in part by macro-economic volatility and in part by anxiety ahead of the EU referendum.” CEO Saad Hammed refused to enter either camp at last week’s Birmingham Airport Expo (see in this issue).
Analysts Liberum said Flybe's results were "marginally ahead of forecasts," but Connor Campbell, senior market analyst at SpreadEx, said "investors [are] insufficiently impressed.”
The airline added 52 routes, pulled out of Bournemouth and dropped London City – Dublin. Its short-term government-subsidised services, typically Newquay – Gatwick, have grown marginally this year so far. Newquay’s controversial £5 “airport development fee” has been dropped.
No mention in the official statement/press release of either the proposed Northolt or Heathrow domestic operations nor the quiet arrival from overseas of Vincent Hodder as chief revenue officer and Amy Valick, chief marketing officer. These key appointments are to replace former chief commercial officer Paul Simmons, who departed for Malaysian Airlines.
Flybe is on a three-year turnaround programme. A successful final 12 months is vital. The share price remains at around 56p.
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