Flybe Sinks On Profit Warning From Weaker Demand, Rising Fuel
Flybe, which has in recent years tried to reduce its fleet size and cut costs, has forecast a pretax loss of around £22 million for the current 12 month period, substantially worse than a current company-supplied consensus for a loss of £3.5 million.
However, a £10 million benefit from the ending of an onerous lease will help cushion the blow, putting the 78-aircraft strong company on track to post a loss of £12 million over its financial year, which runs to March 31, 2019.
Flybe said that in recent weeks, consumer demand for travel in Britain and Europe had weakened, and that would combine with higher fuel prices and weaker sterling to drag on its performance in the second half period.
The winter season is always tougher for airlines as fewer Europeans take flights to go on holiday, and that comes at a time when the oil price is hovering at a near four-year high.
Flybe will announce half-year results on November 14, when it is expected to detail further cost cutting plans.
Aiming To Do More
"Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," Flybe CEO Christine Ourmieres-Widener said in a statement.