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Order HereUK-based regional carrierFlybe reported a net loss of £35.7 million ($55 million) for the full year ended March 31, down from a profit of £8.25 million in the previous financial year.
The airline said this year included £12 million worth of costs relating to discontinuation of its joint venture (JV) operations in Finland.
Flybe CEO Saad Hammad said: “We have just completed the first full financial year of our three year transformation plan. Despite a more challenging environment than anticipated, significant progress has been made. There is much more to do, but … Flybe is back on track to recovery and profitable growth.”
Group revenue for the year declined 7.5% to £574.1 million year-on-year, which the airline attributed to a reduction in charter flying and a planned 7.6% reduction in capacity. Flybe UK’s revenue fell to £550.7 million in FY2015 from £599.6 million during the previous financial year.
Passenger numbers largely mirrored FY2014 levels, with 7.7 million carried during the year, despite a 7.6% reduction in capacity. This pushed the load factor up 5.7 percentage points to an all-time high for the airline of 75.2%, but resulted in a 4.6% reduction in passenger revenue to £528.6 million.
Operating costs, including restructuring and surplus capacity costs, fell 5.7% to £565.7 million for the year, largely due to the reduction in fuel price and capacity. The airline said it achieved £27 million worth of incremental gross cost savings during the year, which when added to the £47 million reduction achieved in FY2014, gives cumulative gross savings of £74 million over two years: £3 million more than its November 2013 commitment.
Flybe said that highlights of the year included completion of its cost restructuring, a 13% improvement in aircraft utilization, exit from the loss-making joint venture with Finnair on March 31, and exit without penalty from an $892 million obligation to buy 24 additional E-175 jets from Embraer with a simultaneous agreement to secure Bombardier Q400 turboprops.
The transformation plan included reducing the employee count by 65, reconfiguring its route network, and the sale of the Finland JV. “As a result, there are a number of one-off and technical items that mask the underlying profit performance,” the airline said, pointing out that summer trading for this year was on track.
Looking forward, Flybe said it “faces trading risks presented by current economic conditions in the aviation sector, particularly in relation to passenger volumes and yields and the associated profitability of individual routes.”
It said the group was exposed to fluctuations in fuel prices and foreign exchange rates, but had hedged its exposure to both.
“Having considered the forecasts and making other enquiries, the directors have a reasonable expectation that Flybe has adequate resources to continue in operational existence for the foreseeable future,” Flybe said.
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Order HereUK-based regional carrierFlybe reported a net loss of £35.7 million ($55 million) for the full year ended March 31, down from a profit of £8.25 million in the previous financial year.
The airline said this year included £12 million worth of costs relating to discontinuation of its joint venture (JV) operations in Finland.
Flybe CEO Saad Hammad said: “We have just completed the first full financial year of our three year transformation plan. Despite a more challenging environment than anticipated, significant progress has been made. There is much more to do, but … Flybe is back on track to recovery and profitable growth.”
Group revenue for the year declined 7.5% to £574.1 million year-on-year, which the airline attributed to a reduction in charter flying and a planned 7.6% reduction in capacity. Flybe UK’s revenue fell to £550.7 million in FY2015 from £599.6 million during the previous financial year.
Passenger numbers largely mirrored FY2014 levels, with 7.7 million carried during the year, despite a 7.6% reduction in capacity. This pushed the load factor up 5.7 percentage points to an all-time high for the airline of 75.2%, but resulted in a 4.6% reduction in passenger revenue to £528.6 million.
Operating costs, including restructuring and surplus capacity costs, fell 5.7% to £565.7 million for the year, largely due to the reduction in fuel price and capacity. The airline said it achieved £27 million worth of incremental gross cost savings during the year, which when added to the £47 million reduction achieved in FY2014, gives cumulative gross savings of £74 million over two years: £3 million more than its November 2013 commitment.
Flybe said that highlights of the year included completion of its cost restructuring, a 13% improvement in aircraft utilization, exit from the loss-making joint venture with Finnair on March 31, and exit without penalty from an $892 million obligation to buy 24 additional E-175 jets from Embraer with a simultaneous agreement to secure Bombardier Q400 turboprops.
The transformation plan included reducing the employee count by 65, reconfiguring its route network, and the sale of the Finland JV. “As a result, there are a number of one-off and technical items that mask the underlying profit performance,” the airline said, pointing out that summer trading for this year was on track.
Looking forward, Flybe said it “faces trading risks presented by current economic conditions in the aviation sector, particularly in relation to passenger volumes and yields and the associated profitability of individual routes.”
It said the group was exposed to fluctuations in fuel prices and foreign exchange rates, but had hedged its exposure to both.
“Having considered the forecasts and making other enquiries, the directors have a reasonable expectation that Flybe has adequate resources to continue in operational existence for the foreseeable future,” Flybe said.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
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Order HereUK-based regional carrierFlybe reported a net loss of £35.7 million ($55 million) for the full year ended March 31, down from a profit of £8.25 million in the previous financial year.
The airline said this year included £12 million worth of costs relating to discontinuation of its joint venture (JV) operations in Finland.
Flybe CEO Saad Hammad said: “We have just completed the first full financial year of our three year transformation plan. Despite a more challenging environment than anticipated, significant progress has been made. There is much more to do, but … Flybe is back on track to recovery and profitable growth.”
Group revenue for the year declined 7.5% to £574.1 million year-on-year, which the airline attributed to a reduction in charter flying and a planned 7.6% reduction in capacity. Flybe UK’s revenue fell to £550.7 million in FY2015 from £599.6 million during the previous financial year.
Passenger numbers largely mirrored FY2014 levels, with 7.7 million carried during the year, despite a 7.6% reduction in capacity. This pushed the load factor up 5.7 percentage points to an all-time high for the airline of 75.2%, but resulted in a 4.6% reduction in passenger revenue to £528.6 million.
Operating costs, including restructuring and surplus capacity costs, fell 5.7% to £565.7 million for the year, largely due to the reduction in fuel price and capacity. The airline said it achieved £27 million worth of incremental gross cost savings during the year, which when added to the £47 million reduction achieved in FY2014, gives cumulative gross savings of £74 million over two years: £3 million more than its November 2013 commitment.
Flybe said that highlights of the year included completion of its cost restructuring, a 13% improvement in aircraft utilization, exit from the loss-making joint venture with Finnair on March 31, and exit without penalty from an $892 million obligation to buy 24 additional E-175 jets from Embraer with a simultaneous agreement to secure Bombardier Q400 turboprops.
The transformation plan included reducing the employee count by 65, reconfiguring its route network, and the sale of the Finland JV. “As a result, there are a number of one-off and technical items that mask the underlying profit performance,” the airline said, pointing out that summer trading for this year was on track.
Looking forward, Flybe said it “faces trading risks presented by current economic conditions in the aviation sector, particularly in relation to passenger volumes and yields and the associated profitability of individual routes.”
It said the group was exposed to fluctuations in fuel prices and foreign exchange rates, but had hedged its exposure to both.
“Having considered the forecasts and making other enquiries, the directors have a reasonable expectation that Flybe has adequate resources to continue in operational existence for the foreseeable future,” Flybe said.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.