UK Regional Airline Flybe has returned to profit after a tough period. The airline had a loss of £35.6m the previous year but have miraculously brought the airline back into profit with a pre-tax annual profit of £2.7m.
Over the past year, the airline have launched 52 new routes, which helped the airline increase passenger numbers by 5.9%. The rise also came despite terrorist attacks in Paris in November and in Brussels in March, which made travellers wary of where to go in terms of tourist destinations.
Flybe CEO Saad Hammad said that lower oil prices have been a factor in the profits of the airline and have also saved the firm £11m in company costs. The Flybe Group revenue has increased by 8.7% to £624m, compared to £574m in the previous financial year.
The firm also added that conditions have remained “challenging” within the firm, regardless of the profits made in the business. They said that the trading conditions had been hit by the ATC & Industrial Strikes in France as well as increased competition within the European Market for short flights.
Mr Hammad, who is steering the company through a three year turnaround plan said: “We delivered top-line growth in a difficult revenue environment, expanding our network and carrying more passengers than last year.” Also, in terms of the profits, the airline have managed to own 50% more of their aircraft, rather than leasing them, which does save the airline money.
The company says that will bring cost savings and greater flexibility. “As a result of all the action we have taken, Flybe is now a much more resilient business and well positioned for profitable growth,” Mr Hammad added.
Aviation analyst, Chris Tarry said: “Today’s results are a step in the right direction. It is a significant achievement but there is quite a way to go. The margins show it is a challenging environment and one which could get tougher from an economic point of view.”