Flybe, a low-cost regional airline based in Exeter, UK, has forecast a loss for the last financial year, despite an increase in ticket sales for the coming summer.
The airline has announced that revenue from ticket sales for Flybe UK increased by 2 percent for the summer season when compared to last year. The company puts the increase down to a rise in passenger numbers and a 1 percent increase in its capacity. However, according to a company statement, revenue for the financial year ending March 2013 was likely to be around £615.3 million, similar to last year’s figure.
In the statement the airline said, ‘Underlying loss before tax for 2012/13 is expected to be within but at the lower end of previous guidance.’
The loss of 300 jobs in its UK division, as announced in January, is part of a restructuring plan to counter the company’s losses. Commenting on this the company said, ‘Phase 1 of the cost reduction plan is progressing well and is expected to deliver cost savings ahead of the £25 million already communicated for the year to March 2014.
‘The Flybe Group has been restructured to create a leaner more focused business, with the number of divisions reduced to two, Flybe UK and Flybe Outsourcing Solutions.’
Despite problems with a weak demand in its domestic UK market, the company is optimistic with regards to its operations outside the UK, for which it has predicted an increase of 15 percent in revenue, year-on-year.
The company has promised an update on developments with its restructuring plans in May.