Flybe cutting costs to get back on track after profit warnings

 
Marion Dakers
REGIONAL airline Flybe remains on course in spite of market turbulence, it said in a trading update yesterday.

The firm, which made its third profit warning of the financial year in January, said moves to cut costs and boost revenues per seat have helped it steady its position in the first quarter of 2012.

It said more details of these measures will be revealed alongside its full-year results in June. Analysts are expecting a loss of up to £10m following disappointing sales over the peak Christmas period.

“Although market conditions remain challenging, we have a robust and flexible business model combined with clear and achievable growth plans. We remain confident about Flybe’s long term future,” the carrier said in a statement.

The Exeter-based group added that its joint venture in Finland is expanding as planned, with new routes into Denmark and Sweden.

Flybe stock closed up 1.97 per cent at 71p yesterday. Its shares have tumbled from a peak of 255p a year ago as soaring fuel costs and sliding passenger revenues hurt its prospects.