Flybe axes 300 jobs in turnaround plan

Airline Flybe is to cut around 300 jobs, or 10 per cent of its UK business, in a bid to cut costs.

The job cuts, as part of a wider turnaround plan, will include a 20 per cent reduction in management headcount and a 10 per cent reduction in overhead and production headcount.

The cost reduction plan should result in £35m of savings by 2014/15, Flybe said this morning, although restructuring costs are estimated to be between £10 and £12m.

In a separate statement, FlybeUK reported a 2.5 per cent increase in revenue to £137.1m over the three months to December. It reiterated its forecast of year-on-year revenue growth of up to two per cent.