Flybe optimistic despite losses of €48m

Loss-making British low-fares airline, Flybe has claimed it remains on course to be Europe’s leading regional carrier, despite its latest set of annual results showing a near sevenfold rise in pre-tax losses to almost €50m.

The Exeter-headquartered airline — which flies all around Europe, including to six airports in Ireland — yesterday reported a pre-tax loss of £40.7m (€48m) for the 12 months to the end of March; significantly up on a loss of £6.4m posted in the previous year.

Despite that, however, revenue under management was up by more than 15% at £781.5m, although group revenue for the year was marginally down — by 0.2% — at £614.3m.

Furthermore, Flybe’s management said that it had “exceeded its target” of removing £25m from the company’s cost base, with cost savings of around £40m due to be realised in the current financial year.

“In the last few months, we have streamlined the business, reducing UK-based headcount by more than 20%. We have also made progress in reducing the cost of our supplier base,” chief executive, Jim French noted.

While Mr French said the latest results were “disappointing”, albeit expected, he said recovery was underway.

“Flybe remains Europe’s largest independent regional airline… we continue to make real and measurable progress in Europe, with our contract flying business in particular being a stable, income-generating entity which is well-positioned for further growth.

“With Flybe’s future cost base significantly improved, the business will now move to reclaim its position as Europe’s leading regional airline,” he added.

The English airline currently operates routes out of Waterford, Shannon, Knock, Donegal, Belfast and Dublin.