Flybe weathers profits fall

An 8.8% rise in revenue per seat to £55.29 for the six months to 30 September and a pledge to continue disposing of excess fleet capacity by shedding surplus aircraft helped Flybe to weather a fall in first-half profits, CEO Christine Ourmières-Widener said last week.

Presenting the airline’s latest report, she said costs excluding fuel rose by 10.1% as the result of leaving an “onerous” IT contract, higher maintenance charges and the drop in the value of sterling.

Operating profits fell by more than a third to £11.2m, but pre-tax profits more than doubled to £15.1m thanks to favourable exchange rate movements. This and an increase in revenues of more than 9% to £418m saw shares rise by 2% to 37p.

Ourmières-Widener said four aircraft had left the fleet with two more due shortly, taking the total to 79 and on course for a target of 70 by 2019/20. “Load factors are expected to continue to strengthen as the fleet reduces and we anticipate yields will stabilise,” the CEO said.

"While half-year profits are lower than last year … I am confident that we are on a clear path to sustainable profitability through the investments and improvements we are making.”

www.flybe.com

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