The airline delivered 15% additional capacity in Q4, 2014, but held its load factors constant and delivered 15% passenger growth. The required yield investment associated with the new capacity and lower spot fuel prices were more than offset by higher passenger volumes and overall passenger revenues increased by more than 5%.
Results for the full year to 31 March 2015 are anticipated to be in line with market expectations, with Flybe on track to achieve around break-even at pre-tax profit level, before the £26m cost of the E195 jets and any impact of USD loan revaluation, but after the Finland JV write down of £10m and EU261 flight delay provision of £6m.
This outturn would represent an improvement of £14m on the previous year’s loss of £9.0m on a comparable basis, excluding the one-off effects of the Finland JV divestment, the EU261 provision, USD loan revaluations and last year’s restructuring costs, together with the benefit from the sale of Gatwick slots.
Commenting on the result, Flybe CEO Saad Hammad said: “We’re pleased to report a return to growth at Flybe, one year after our capital raise. These results demonstrate that we are beginning to deliver on the company’s growth opportunities and that we’ve tackled the majority of the company’s legacy issues.”
“There is clearly more to do; further improvements in efficiency, further cost reductions and the resolution of our remaining surplus aircraft. However, one year into our turnaround, we have a clear line of sight towards profitable growth.”