Flybe up for sale following previous profit warnings

Flybe

Following a recent profit warning, Flybe has put itself up for sale.

The budget airline said in a statement to the stock market that profits had significantly fallen due to the weaker pound and rising fuel costs.

Last month, the Exeter-based regional airline said that it expected losses to come in at £22 million. In the latest results, pre-tax profits for the six months to 30 September fell by 54% to £7.4 million.

The group said following the profit warning that they would carry out a number of cost-savings strategies. 

“Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs,” said Flybe’s chief executive, Christine Ourmières-Widener.

Ourmières-Widener has said that the group has a “strategy in place that is working.”

Unite national officer Oliver Richardson has expressed concern over the airline’s sale.

“Our first priority will be to remove the uncertainty facing our members by seeking assurances on jobs, pay and terms and conditions from both Flybe and any potential new owners,” he said.

Since September, shares have fallen by 75%.  Shares surged by almost 40% on Wednesday before trading started.

Shares in the group (LON: FLYB) are currently trading -0.43% lower at 11.65 (1515GMT). The company is valued at around £26 million.

Flybe is not the only airline facing pressure in recent months. Recently, the Cypriot carrier Cobalt, Denmark’s Primera collapsed and Britain’s Monarch have all collapsed.

The chief executive has attempted to reassure customers and said they should should have “no worries at all” about current or future bookings.