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Flybe profits plunge
Flybe profits during the first half of the year plunged 47% despite a 9.3% rise in revenue to £418.5 million.
The airline blamed the dramatic drop in profits on a one-off ‘onerous’ IT contract and increased maintenance costs. As a result, its costs in the first six months soared more than 11% to £410 million. Profits were also hit by sterling’s devaluation.
However, the airline said the adjusted pre-tax profit was towards the upper end of the range of £5 million to £10 million announced in mid-October.
"We have made good progress in the first half of the year and with our fleet size under control, we are already delivering improvements to passenger yield and load factors," added CEO Christine Ourmieres-Widener.
"Load factors are expected to continue to strengthen as the fleet reduces and we anticipate that yields will stabilise.
"While half-year profits are lower than last year, due to the one-off IT contract costs, higher maintenance expenses and the impact of the fall in the value of sterling, I am confident that we are on a clear path to sustainable profitability through the investments and improvements we are making at Flybe.
"In the second half, we will focus on improving our cost base and reliability performance while preparing the business for the future as we invest in the new digital platform. As the business model changes, I am particularly pleased to have a new senior management team with ever more aviation experience."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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