Flybe cuts back as demand falters

Airline Flybe reported soaring profits today but said it will reduce capacity by 6% over the winter amid falling demand.

Europe’s biggest regional airline said underlying profits rose 74% to £14.3m (€16.75m) in the six months to September 30 after it was boosted by higher passenger numbers in the UK and the acquisition of an airline in Finland.

But the group, which flies from airports including Birmingham, Bristol, Cardiff, Doncaster, Edinburgh and East Midlands, said revenues from forward ticket sales for this winter are 1% lower than a year ago.

It will reduce the number of seats flown over the winter by 6% compared to a year ago as it matches capacity with demand.

The fall in winter sales comes on the back of a recent warning that demand had slowed in September, meaning half-year revenues would come in lower than it previously thought.

Douglas McNeill, an analyst at Charles Stanley, said: “Demand doesn’t appear to have recovered much since the profit warning in early October, and that’s a concern.”