Lets be realistic here.
A year ago Flybe used to operate 4 daily flights in each direction on the LBABHD route giving a total of approx 200 seats in each direction each day. JET2 come along on the same route and expand capacity overnight by 150% adding 300 seats in each direction.
I'm not getting at JET2 here because I still believe that Flybe can easily compete and retain there fair share of the market to make a profit. However you cannot expect another airline to come in and increase the capacity of such a route with no detrimental effect.
Flybe have done the sensible thing and reduced capacity by cutting out the mid morning rotation that typically yields the least profit.
Remember that Flybe is still offering more seats with 3 Q400 rotations than it would have done with 4 CRJ rotations and with healthy loads too.