Regional airline Flybe reported an overall loss before tax of £15.3m for the six months to 30 September, compared to a £13.8m profit for the equivalent period last year.
Revenue was also down at £307.8m for the half year – a drop of 12.3 per cent from 2013's figure of £351.1m.
Flybe operates over 180 routes to 65 European airports, making it Europe's largest regional airline.
The news of the loss sent shares in the UK company plummeting by 15.8 per cent to £1.11 in morning trading.
Considering the UK business independently from the rest of the group, however, there was a strong performance. Profit before tax was up by £2.0m to £13.7m for the period, while passenger revenue per seat increased by 8.7 per cent to £54.75.
In a statement released this morning, chief executive Saad Hammad said the airline was focussing on improving the group's strategy:
Our UK business performed well in the first half of the year showing the strength of the new Flybe. We delivered an increased adjusted profit before tax in the Flybe UK business and importantly became cash generative.We are making significant progress in addressing the legacy issues within the business, which will ensure we operate with a simpler business model.