Flybe has announced it will cut 500 jobs across the business, despite reporting a return to profit.

Pre-tax profits at the Exeter-based airline were £13.8 million for the six months to September 30th, compared with a loss of £1.6 million a year earlier.

The company said its turnaround plan was on track to make £40 million of savings this year and £45 million in 2014-15.

Flybe employs 2,700 staff.

Flybe cut 490 jobs in 2012-13, with a further 100 going in the first half of 2013-14.

Group revenues rose to £351 million in the six months, up from £341 million in the same period last year.

The carrier now has 96 aircraft in its fleet, with 28 belonging to Flybe Finland, its joint venture with Finnish Air.