Flybe warns over profits

Low fares regional airline Flybe has warned that first-half profits will be lower than expected, sending shares tumbling as higher maintenance costs compounded a tough airline market.

Flybe is to review its maintenance strategy with the aim of improving aircraft performance and costs. Shares fell nearly 20% after the warning, which comes against a backdrop of intense competition in the sector that has kept prices low and put several larger companies out of business.

Flybe said it now expected a first-half adjusted pre-tax profit in the range of £5m-£10m (€5.6m to €11.2m), down from £15.9m in the first half of its 2016-17 year. Flybe’s financial year runs to the end of March.