Flybe Group Plc’s (LON:FLYB) “solid” third quarter results were marred by a slow start to the fourth quarter, hit by customer uncertainty and poor weather conditions.
The budget airline said on Monday that revenue grew during the third quarter, up 13.5 percent in the three months to December and indicating a solid improvement on the 5.7 percent rise in revenue during the first half of 2016. In addition, individual seat revenue rose 0.2 percent in the third quarter as opposed to a fall of 6.9 percent in the first half.
However chief executive Christine Ourmieres-Widener admitted that “There is much to be done”, adding that her first priority would be “to look to rebuild passenger unit revenue and to challenge all our costs.”
Ourmieres-Widener, previously head of City-jet, was appointed to the position in November of last year.
Many airlines have felt the impact of passenger concerns over the threats of terrorism, following attacks in Paris and in Brussels airport in 2016. In addition to security concerns, the European aviation industry has also cautioned over the potential adverse effect of Brexit on profits. Flybe announced in November that the industry should brace itself for an impact both “operationally and commercially”.
This follows similar concerns from rival budget airline Easyjet (LON:EZJ), who last week revealed that the recent devaluation of the pound had caused profits to fall by £105 million.
Prior to the figures, the airline announced in December that intended to increase its route network with new routes to Edinburgh and Aberdeen commencing March of 2017. In addition to this, the air carrier intends to see four extra Q400 aircraft added to the fleet, with the final four to be put in operation during the last quarter in a bid to increase operations and revenue.
Shares in Flybe Group plc were up by 1.10 percent as of 10.04 AM (GMT).