Flybe profits dip but ancillary revenues soar
Saturday, 01 Feb, 2010
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Ancillary revenues per Flybe passenger grew by 30% in the year to March 2009, according to latest figures.
The regional airline’s latest accounts for the financial year ending March 31, 2009, show the per passenger ancillary revenue rate rising from £7.97 a year earlier to £10.37.
Passenger numbers were up by 4.3% but the airline suffered a steep fall in pre-tax profits to £12.8 million from £35.4 million despite a 6.8% rise in turnover to £572.4 million.
The results reflect a period the carrier described as “one of the most turbulent environments ever experienced by the world’s aviation industry” due to the global downturn in the world’s financial markets, the spike in oil prices and the onset of global economic recession.
The rise in ancillary revenue was driven by new “value added streams” including income from advanced seat assignment and financial services.
Chairman and chief executive Jim French said: “The Flybe business model was put to the ultimate test during the year and I am delighted to report that it came through with flying colours.
“In my 40 years in the industry, I have never experienced such a difficult environment and, in that context, we can rightly regard the result for the year as a success. I am proud that Flybe was one of few major airlines to announce a profit in the year.”
He said Flybe would be one of a handful of European airlines to emerge stronger and more competitive as the recession comes to an end due to a management team which continues to “demonstrate both clear strategic focus and agility”.
“Whilst steering Flybe through economic turbulence, we also remained focused on developing our business and brand,” said French.
Looking ahead, he added: “Flybe has continued to prove the resilience of its business model and strategy by recording good profits for the half year period to 30 September 2009.
“The airline is winning market share in a number of key markets and we are seeing substantial rationalisation by our competitors in our key domestic market place.
“In the first half of 2009/10, Flybe became the UK’s number one domestic airline.
“The airline is having a good recession and is well positioned to harvest the benefits when more benign economic conditions return.
“The airline has successfully completed the financing of all its current fleet in the year and has no new aircraft to finance until April 2011- putting it in an enviable position among European airlines.”
by Phil Davies
Phil Davies
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