Regional carrier Flybe has made a further £6.2m pre-tax loss on top of the £4.3m lost last year.
However, the airline described the 44% decline for the full year to March 31 as "in line with expectations".
Revenue increased 14% to £678.8m against a rise in passenger numbers of 5.8% to 7.6m.
Chairman and chief executive Jim French said Flybe had a "robust business model and a clear growth strategy".
He said the airline was mitigating the impact of the economic downturn in the UK through a continued focus on managing costs and capacity.
"We are pleased with the progress we have made with Flybe Finland, underpinning our European expansion plans and the replication of our UK operations," he said.
"Meanwhile, our fleet substitution programme, along with a de-risking of the business through a significant increase in contract flying, will have a far reaching beneficial impact on the business and one that will benefit the Group for many years to come.
"We will continue to invest in the Group’s future ensuring that we maintain our market leading regional position in the UK and, at the same time, seeking to build a similar position across Europe."
French admitted the business environment was "challenging" but he insisted Flybe was resilient. "Flybe is well placed to take advantage of any improvement in the UK macro environment and has a strong platform in Europe to leverage, leaving the Group strongly placed for the future," he said.
By Linsey McNeill
