23 OCTOBER 2017
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With the public concerned regarding air travel after Monarch, Flybe has taken the unusual step last week of warning that higher costs will mean lower than expected first half pre-tax profits. The share price dropped to 34.38p, valuing the carrier at £76.66m. The airline floated in 2010 at 295p.
Flybe says that some higher costs relate to the airline’s drive to improve aircraft reliability, particularly with the Bombardier Q400.
The figures for the past six months are now expected to be in the £5m to £10m range. The adjusted pre-tax profit in the previous year’s first half was £15.9m.
Controversially appointed at the start of this year, chief executive Christine Ourmières-Widener said: “While half-year profits are lower than expected, I am confident that we are still on a clear sustainable path to profitability in line with our stated plan.”
Flybe noted the updated guidance was due partly to additional IT costs of around £6m related to the development of a new digital platform, but turned down requests for further background.
The airline is chaired by Simon Laffin, previously with Safeway. Under the previous management, it was a lead airline regarding scheduled services into RAF Northolt. Air Marshal Sir Timothy Anderson is a member of the board. Interim results will be announced on 9 November.
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