Flybe has increased ticket sales in the UK for this summer but is still expecting to make a loss during its last financial year.
The regional airline said that forward ticket revenue for Flybe UK was up by 2 per cent for the summer season compared to this time last year - mainly due to a rise in passenger numbers - as Flybe has increased capacity by 1 per cent.
Flybe added that its revenue for the financial year ending in March 2013 was likely to be “in line” with last year’s figure of £615.3 million.
“Underlying loss before tax for 2012/13 is expected to be within but at the lower end of previous guidance,” said the Exeter-based airline.
The airline is currently restructuring its UK business and said it had been “taking significant actions to restore profitability”. Flybe announced in January that it was cutting 300 jobs in its UK division.
Flybe said in a statement: “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.”
The airline said it would give a detailed update on the progress of its restructuring plans in May.
Flybe has been struggling over the last few years due to weak domestic demand in its UK market. The company said that revenue for its operations outside the UK including Flybe Finland, the joint venture with Finnair, was set to rise by 15 per cent year-on-year.
flybe.com