Flybe is expected to break-even this year after increasing passenger numbers and revenue.
The UK regional airline, which has just finished the first year of a three-year “turnaround” programme, said that passenger revenue rose by 5 per cent for the financial year ending on March 31, 2015.
Passenger numbers also increased by 15% during the year compared to 2014, which matched a 15% rise in capacity over the same period.
This growth means that Flybe is “on track to achieve around break-even at pre-tax profit level”, compared to a loss of £9 million last year.
As part of Flybe’s restructuring process, the airline has sold all of its Gatwick slots to Easyjet and started flying instead from London City Airport in October 2014.
Flybe chief executive Saad Hammad said: “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.”
Flybe added that its routes from London City and other UK airports were being “optimised with capacity diverted to the most successful”. The airline has already announced that it will be cancelling its London City-Dublin route from May 31.
The airline said that its routes from London City were “showing promising progress” with load factors reaching 70 per cent within five months.
Flybe added that passenger revenue had risen by 9 per cent so far for the summer 2015 flying season while capacity is up by 13 per cent.
flybe.com