troubleatthemill,
Flybe made significant losses during 2001/02 and 2002/03. Nearly all the monies made from the sale of the LHR slots went straight back to the Walker family who had bailed the company out over those few years. Any monies left over were used to ensure robustness over the planned fleet change and as deposits to secure new aircraft (Q400's).
Flybe are now on a sound financial footing, with growth running at around 35%. more importantly, and rare in the current market is that yield has increased by 10% so far this year. This is allowing Flybe to record an operating profit, (for the past 6mths), for the first time in 5 years.