Atrading update from regional airline Flybe (FLYB) heralds a return to profitability and shares in the Exeter-based £124.6 million cap are up 0.9% at 58p.
The update, issued ahead of June 10 results for the year ended March 31, points to a return to growth in both seat capacity and revenue in the final quarter of the year, its first of a three-year turnaround. Management believes Flybe is well positioned to continue its positive momentum.
The airline delivered 15% additional capacity in the fourth quarter, but held its load factor constant at 70% and delivered 15% passenger growth. Year end results are expected to be in line with market expectations, with Flybe on track to achieve around break-even at pre-tax level, before exceptionals. These include the £26 million cost of E195 jets and any impact of US dollar loan revaluation, but after the Finland JV write down of £10 million and EU261 flight delay provision of £6 million.
Looking forward, summer 2015 trading is already ahead of last year with the airline posting a 9% year-on-year increase in passenger revenue as well as a 13% increase in capacity. Flybe is also reporting that 31% of capacity has been already sold which is two percentage points behind prior year which the airline blames on the earlier Easter.
