Source - SMW
Flybe has warned that  first half profits would be lower than previously forecast after it incurred higher than expected costs following a  detailed review of aircraft maintenance.

It said this reflected the drive to further improve the reliability of its aircraft, particularly the Bombardier Q400 turboprop, and improvements were already being seen.

It said a full review of the maintenance strategy had now been launched which aimed at a significant improvement of aircraft performance and costs.

It said that as a result, adjusted pre-tax profit was currently expected to be in the range of £5m to £10m for the first half of this financial year (H1 2016/17 adjusted PBT of £15.9m). 

Flybe said this was after charging the additional IT costs, as previously announced, of around £6m in the first half of this year related to the development of a new digital platform.

Chief executive Christine Ourmieres-Widener said:' While half-year profits are lower than expected, I am confident that we are still on a clear sustainable path to profitability in line with our stated plan. 

'The increased maintenance costs are disappointing, but we are already addressing these in the second half and remain focused on improving our cost base and reliability performance. 

'Our Sustainable Business Improvement Plan is delivering benefits with the fleet size now reducing, and consequently both yield and load factors are increasing. 

'The net debt, as expected, remains broadly in line with year ended 31st March 2017.'