Wednesday, 17 October 2018

Flybe shares sink more than a third after profit warning

Flybe shares have fallen more than a third after issuing a profit warning, blaming poor demand, a weaker pound and higher fuel costs.

The airline said in a trading update it now expects a full-year pre-tax loss of £22m before - far higher than analysts had expected.

It has taken a £29m hit from weak sterling and a rise in fuel prices.

However, the overall loss would be closer to £12m due to a £10m windfall from ending an onerous lease.

In June the Exeter-based airline reported an annual pre-tax loss of £19.2m, which it blamed on poor winter weather, a major IT overhaul and additional maintenance costs.
Christine Ourmieres-Widener, chief executive of Flybe, said the market had softened in recent weeks after passenger revenue per seat rose 6.8% over the summer period.

"We are reviewing further capacity and cost-saving measures. Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," she said.

"We continue to strengthen the underlying business and remain confident that our strategy will improve performance."

BBC       News.

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