Flybe Profit Drops On Challenging Environment
UK-based regional airline Flybe posted a first-half net profit drop of 50 percent to GBP£13.4 million (USD$16.6 million).
Flybe said the net profit drop reflected “a more challenging environment”, despite higher revenue and improved unit costs.
Revenue for the six months rose 12.8 percent to GBP£383 million on a passenger revenue increase of 5.7 percent to GBP£338.1 million. Revenue from contract flying, for carriers such as Brussels Airlines and SAS, tripled to GBP£15.8 million.
Costs for the first half were up 15.2 percent to GBP£367.1 million as the pound’s fall increased US dollar costs.
Flybe increased capacity in seats flown terms by 13.5 percent, but with a 7.1 percent increase in passengers flown to 4.8 million, load factor fell by 4.3 percentage points to 76.3 percent.
“The aviation market is tough at the moment, with excess seat capacity in the European short - haul market coupled with a weaker pound, and both business and consumer uncertainty impacting all airlines,” executive chairman Simon Laffin said.
Flybe chief executive Saad Hammad, who had led a three year turnaround plan for the carrier, left at the end of last month in a surprise move. A successor has not yet been selected.