Turnaround puts Flybe back in black
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Flybe has returned to profitability following a successful turnaround programme focused on regional Europe.
The Exeter-based carrier today announced an adjusted profit before tax and costs of GBP1.7 million for the year ending 31 March 2014.
This is a significant improvement from the GBP23.6m loss posted last year, while its profit before tax went up to GBP8.1m from a GBP41.1m loss in the previous year.
In a year when the airline saw record passenger numbers climb 6.9% to 7.7m and load factors improve to 69.5% in its UK business, Flybe finished the 12 months with total cash of GBP218.4m, net assets of GBP194.1m and GBP150.1m net equity fund raised.
“2013/14 marks the rebirth of Flybe. We implemented a turnaround plan to stabilise the business and then successfully raised more than GBP150m net to strengthen our balance sheet and drive sustainable profitable growth. The return to profitability is a great step forwards,” said Saad Hammad, CEO of Flybe. “This enables us to start implementing our twin-engine strategy of growing our UK branded business and our white label operations across Europe. We have made a good start to FY15, in line with our expectations.”
The airline’s revenue under management improved 11.1% driven by growth in its white label venture in Finland, with Flybe announcing a second similar venture with Zurich-based Helvetic Airways.
Under the agreement Flybe will provide Helvetic Airways with an 118-seat Embraer E195 aircraft with flight deck and cabin crew operating under Flybe’s Airline Operating Certificate for two months.
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