Flybe, Europe's largest regional airline, posted a steep fall in full-year profit, hit by tough economic conditions in Britain and rising fuel costs.
The British carrier on Monday reported underlying earnings before interest, taxes, depreciation, amortisation and restructuring (EBITDAR) of GBP£88.8 million (USD$136.9 million) for the year to the end of March. Group revenues rose 3.3 percent to GBP£615.3 million.
It called the performance, which was hit by a 5 percent decline in its core UK market and GBP£3.7 million of losses at its Flybe Europe division, "disappointing".
Flybe and Finnair last year bought Finland's biggest domestic carrier Finnish Commuter Airlines (FCA) for USD$35 million to expand in the Baltic market.
It was also negatively impacted by inflationary pressures and high fuel prices.
The company, which floated in London in 2010, said its fuel costs rose 15 percent to GBP£106.4 million during the year.