Flybe’s pre-tax losses have increased sevenfold to £40.7 million.
The airline described the losses as "expected" but "nonetheless disappointing".
It said it has taken difficult decisions as part of its turnaround plan, including cutting UK staff numbers by 20% and asking its pilots to accept a 5% pay cut.
"We expect to see considerable reductions in the cost base of the business in both this year and the next, thanks to the actions taken during the course of 2013 that are targeted to be complete later this year," said chairman and chief executive Jim French.
"The group is now more strongly placed for the future."
Flybe has made more than £25 million of cost savings in the first phase of a turnaround plan and has targeted another £40 million of savings in this financial year
The airline is selling its Gatwick slots to easyJet for £20 million and has deferred delivery of 16 Embraer E175 regional jets.
