Thursday, 8 June 2017

Flybe promises overhaul after £20m loss

Regional airline Flybe has hit turbulence, running up a near £20m loss after previous expansion plans proved too ambitious.

The carrier reported a pre-tax loss of £19.9m in the year to 31 March, despite revenues rising 13.4% to £707.4m.

Flybe said it would start to reduce the size of its fleet after it saw slowing growth in consumer demand.

However, it insisted the current year was going well and efforts to turn a profit again were well underway.

Flybe has struggled in the past year with a series of costly mistakes, including running too many loss-making routes and failed joint ventures.
An aggressive expansion plan increased capacity on the airline by 12.3% to 12.7 million seats, but passenger numbers only rose 7.6% to 8.8 million.

Six Bombardier Q400 aircraft will be cut from the fleet next year.

But the City appeared pleased with the company's future plans to return to profit, with shares up 6% to 35p in early trading.

BBC      News.