Flybe issues second profit warning
Flybe has warned its profit for the first half of the year will be lower than expected following a rise in aircraft maintenance costs.
The news, which follows a profit warning earlier this year, caused shares in the airline to drop as much as 20%.
The airline said that its adjusted pre-tax profit is now expected to be £5 million to £10 million, compared with £15.9 million in the same period last year.
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."
She said the fall in profits was due to higher maintenance costs following a full review of its maintenance.
"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," she added.
She said the maintenance review was aimed at making significant improvements of aircraft performance and costs, particularly the Bombardier Q400 turboprop.
Ourmieres-Widener added that the firm’s sustainable business improvement plan was delivering benefits with yield and load factors increasing.
The airline has already charged an additional £6 million for the development of a new digital platform in the first half of the year.
It will provide more information at its interim results on November 9.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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