Southampton's largest carrier Flybe cuts growth forecasts

Daily Echo: Flybe cuts growth forecasts and reveals UK planes are flying two-thirds full Flybe cuts growth forecasts and reveals UK planes are flying two-thirds full

Flybe shares nose dived as much as 15 per cent this morning after it issued a profits warning and revealed its planes are flying from the UK less than two-thirds full.

Southampton Airport ’s largest carrier said economic challenges at home and the Eurozone, together with “distortions” from the Jubilee and Olympics and rising fuel costs would hit full year revenues.

The airline, which has 85 planes, said it expected full-year growth to be between 0 and 2 per cent, below previous forecasts, and would reveal further cost savings at the end of September.

It is the third profits warning Flybe has issued in the past year due to a slowdown in sales.

UK passenger numbers in the in three months to June 30 fell to 1.92 million, 3 per cent lower than the same period last year.

Planes flying from the UK are now 62.4 per cent full, a decrease of 0.7 percentage points.

Flybe UK’s revenues rose 0.7 per cent £156.4 million in the first quarter. The group’s total revenues, including its European operations, rose 20.4 per cent to £193.2m.

Jim French, Flybe's chairman and chief executive, said: “2012/13 is proving to be another very challenging year in the European regional aviation sector with continued weak consumer markets and stubbornly high oil prices.

"After four years of consecutive decline, the UK domestic air market had shown signs of stabilising this year although June slipped back into 3 per cent year on year decline.

He added: “We remain cautious over the outlook and do not expect a material recovery in either consumer or business confidence in the short term.

“We therefore remain focused on executing our comprehensive action plan to both grow the business whilst mitigating cost pressures.”

Mr French added said Flybe’s market share in the UK remained above 50 per cent, and it had a “robust and flexible” business model and clear growth plans.

“Although we expect market conditions to remain challenging, we remain confident about Flybe's long term future,” he said.

Shares fell 15 per cent to 64p this morning. The company is valued at about £48m.

Comments (10)

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11:27am Fri 10 Aug 12

OSPREYSAINT says...

Not the first time they have done this recently, shooting yourself in the foot it seems. Perhaps if they lowered the fares just a little they might attract more custom?
Not the first time they have done this recently, shooting yourself in the foot it seems. Perhaps if they lowered the fares just a little they might attract more custom? OSPREYSAINT

11:30am Fri 10 Aug 12

bell14 says...

they say flybe is a cheap air line i dont think its cheap at all
they say flybe is a cheap air line i dont think its cheap at all bell14

11:49am Fri 10 Aug 12

southy says...

OSPREYSAINT wrote:
Not the first time they have done this recently, shooting yourself in the foot it seems. Perhaps if they lowered the fares just a little they might attract more custom?
more of a case that the recession is now starting to hit Holidays lesure industary.
[quote][p][bold]OSPREYSAINT[/bold] wrote: Not the first time they have done this recently, shooting yourself in the foot it seems. Perhaps if they lowered the fares just a little they might attract more custom?[/p][/quote]more of a case that the recession is now starting to hit Holidays lesure industary. southy

12:04pm Fri 10 Aug 12

Lone Ranger. says...

I can understand the cuts in growth forecast.
.
Bank of England changes its forecast every month downwards ...... and they should have their finger on the pulse ....... you would think
I can understand the cuts in growth forecast. . Bank of England changes its forecast every month downwards ...... and they should have their finger on the pulse ....... you would think Lone Ranger.

12:10pm Fri 10 Aug 12

bigfella777 says...

If they lowered the fares perhaps they wouldn't be 2 thirds full.In the mean time we will just keep driving down to Bournemouth to use Ryanair, ridiculous.
If they lowered the fares perhaps they wouldn't be 2 thirds full.In the mean time we will just keep driving down to Bournemouth to use Ryanair, ridiculous. bigfella777

3:50pm Fri 10 Aug 12

Foerst Folk says...

I have flown with Flymaybe about 80 times in 2 years.
The flights are expensive
The customer rewards are a joke.
The flights are unreliable.

Now i fly BA from Heathrow. Better lounge, free food, and a much better customer service.
I have flown with Flymaybe about 80 times in 2 years. The flights are expensive The customer rewards are a joke. The flights are unreliable. Now i fly BA from Heathrow. Better lounge, free food, and a much better customer service. Foerst Folk

5:47pm Fri 10 Aug 12

lordshill loyal says...

couldnt agree more foerst folk.and the cheeky bleeders were charging a surcharge on my debit card.at least dick turpin wore a mask.!!!!!!!!!!!
couldnt agree more foerst folk.and the cheeky bleeders were charging a surcharge on my debit card.at least dick turpin wore a mask.!!!!!!!!!!! lordshill loyal

6:51pm Fri 10 Aug 12

Fatty x Ford Worker says...

User friendly Airport you are aving a laugh aint you!
User friendly Airport you are aving a laugh aint you! Fatty x Ford Worker

9:28pm Fri 10 Aug 12

10 Minute Man says...

I like the airport but flying FlyBe this week was like going on an old fashioned bus - late, noisy, and not very clean.
I like the airport but flying FlyBe this week was like going on an old fashioned bus - late, noisy, and not very clean. 10 Minute Man

9:48pm Fri 10 Aug 12

Buntylicious says...

I agree, Southampton Airport is great, but Flybe need to pull their socks up. £350 return each to Malaga last week, and on the way back my husband, my daughter and myself all had to sit separately, even though we checked in two hours before the flight. Rip off.
I agree, Southampton Airport is great, but Flybe need to pull their socks up. £350 return each to Malaga last week, and on the way back my husband, my daughter and myself all had to sit separately, even though we checked in two hours before the flight. Rip off. Buntylicious

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