Record results for Flybe

UK airline Flybe has announced a record pre-tax profit in the year to March 31st.

The regional airline made a profit of some of £35.4 million for the period, an increase of £20 million on the previous financial year.

Sales for the year rose by 46 per cent, to 535.9 million as the carrier flew seven million passengers.

However, while the airlines fuel costs are less than a quarter of the total, well below the industry average, the airline announced it would be cutting capacity to insulate against rising oil prices.

Flybe said it would cut 9.5 per cent of planned capacity successfully for the winter 08/09 to counter fuel costs and macro-economic trends.

"With one of the most fuel-efficient fleets and a passenger base that is less dependant upon discretionary leisure spend, Flybe is continuing to perform strongly in the current difficult environment," said Flybe chairman, Jim French.

"In the first quarter's trading of this year, both revenues and operating profits were significantly higher than in the same period last year."

The airline recorded a pre-tax profit of £12.2 million for the first quarter of its financial year, an increase of 14 per cent.

Passenger numbers were also up 18 per cent over the three month period.

"The combination of our long-term strategy, focussed management actions and strong cash position gives us a major opportunity to maximise the opportunities that will surely come as the industry enters a period of consolidation," concluded Mr French.

Chris O'Toole