Flybe profits fall as costs mount

Flybe profits fall as costs mount

Flybe has seen adjusted profit before tax reduced to £8.4 million for the first half of financial 2017-18.

The fall is largely due to the previously announced one-off onerous IT contract provision and the impact of increased aircraft maintenance costs, the carrier said.

However, the adjusted profit before tax was towards the upper end of the range of £5-£10 million announced on October 18th.

The figures as group revenue increased 9.3 per cent to £418.5 million for the six months.

Christine Ourmieres-Widener, chief executive, Flybe, commented: “We have made good progress in the first half of the year and with our fleet size under control, we are already delivering improvements to passenger yield and load factors.

“Load factors are expected to continue to strengthen as the fleet reduces and we anticipate that yields will stabilise.

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“While half-year profits are lower than last year, due to the one-off IT contract costs, higher maintenance expenses and the impact of the fall in the value of sterling, I am confident that we are on a clear path to sustainable profitability through the investments and improvements we are making at Flybe.

“In the second half, we will focus on improving our cost base and reliability performance while preparing the business for the future as we invest in the new digital platform.

“As the business model changes, I am particularly pleased to have a new senior management team with ever more aviation experience.”

Profit before tax at Flybe increased to £15.1 million for the period, reflecting £6.7 million of non-cash revaluation gains on US$ aircraft loans.