STRUGGLING British airline Flybe today announced that annual pre-tax losses had widened to £40.7m, due to high fuel prices, increased air charges and a decline in its core home market.
The firm has streamlined the business and reduced its UK staff by more than 20 per cent, cutting around 490 jobs.
“Flybe has exceeded its target of taking out £25m from its cost base during 2013/14 and will deliver around £40m in savings in this current financial year, expected to rise to £50m annualised savings from 2014/15 onwards,” said chairman and chief executive Jim French.
“In the last few months we have streamlined the business, reducing UK-based headcount by more than 20%. We have also made major progress in reducing the cost of our supplier base.
“Our results for 2012/13, while expected, are nonetheless disappointing. During the year, we have taken difficult decisions as part of our turnaround plan, which have affected all our people. Challenging as they have been, these decisions were critical to ensuring the future success of Flybe.”