Flybe seeks to overcome turbulence in European aviation

Flybe seeks to overcome turbulence in European aviation

Regional airline Flybe has seen unit revenues fall during the first quarter of financial 2016/17, with the UK’s decision to leave the European Union hitting figures.

The carrier saw a 3.9 per cent decrease in passenger yield, to £68.39, during the quarter, while revenue per seat fell 9.1 per cent £47.95.

Saad Hammad, chief executive at Flybe, said: “Flybe continues to make progress despite significant external challenges.

“We delivered a solid quarter through vigorous commercial execution and enhanced operational delivery.

“The current outlook is very uncertain and we have limited forward visibility due to our late booking profile.

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“We are yet to see the full impact on demand of the devaluation of sterling and the heightened consumer uncertainty after the Brexit vote.

“It is also too early to assess the potential demand impact of recent terrorist attacks.

“We are continuing to take action to reduce unit costs and moderate our seat capacity growth, as demonstrated by our recent deal with NAC to cancel a contractual obligation to lease an incremental nine aircraft.

“While we currently face significant external risks, we have a strong balance sheet and cash position as well as a disciplined and resilient organisation to take us forward.”

Elsewhere Flybe saw a 15.5 per cent increase in seat capacity, with the carrier offering 3.2 million seats in the first quarter.

The carrier also welcomed 9.2 per cent growth in passenger numbers, with 2.3 million customers welcomed on board over the period.

This growth is delivered despite a slow start in April and demand headwinds stemming from continued fear of terrorism, concerns about macro-economic volatility and uncertainty around the EU referendum vote.