Flybe announces record annual pre-tax profits in 2007/08
as announced on flybe's website:
Flybe announces record annual pre-tax profits in 2007/08 and strong growth in the first quarter of 2008/09
08 September 2008
Leading regional airline reports 14% increase in 08/09 Q1 profit in a globally loss-making market Flybe, one of Europe’s largest and most successful regional airline, has today announced record financial results for the year ending 31 March 2008, with a 46% increase in turnover to £535.9 million and an underlying profit before tax of £35.4million, representing an improvement of £20m over the previous year.
With global airline losses forecast to exceed $5bn* this year and with many industry players struggling in light of the current economic instability, Flybe continues to go from strength to strength, recording pre-tax earnings of £12.2 million for the first quarter of this year (April – June 2008), an increase of 14% on last year, as well as an 18% increase in passenger figures on the same period last year.
Other notable developments in the last 15 months include:
- Successful integration of BA Connect
- Continued growth of the airline, now selling over 190 destinations across Europe making Flybe one of Europe’s largest and most successful regional airline
- Launch of the world’s first aviation ecolabel
- Continued commitment to deliver a dual-type environmentally sensitive fleet by mid-2009
- Groundbreaking Loganair franchise deal positioning Flybe as Scotland’s second largest airline
Over the last six years, Flybe has grown from an airline with 41 routes and 1.9 million passengers to what it is today – a nationally recognised brand that flew 7-million passengers last year, with new aircraft orders worth $2bn and now selling to over 190 destinations throughout regional Europe today. This has all helped to deliver passenger and turnover growth considerably since 2002.
In a year of outstanding achievement and strategic development, which also delivered an exceptionally strong trading performance despite a challenging economic climate, Flybe Chairman and Chief Executive Officer, Jim French says: “Flybe became one of Europe’s largest regional airlines in 2007/08 in what was a transformational year for the business as we successfully integrated and realised the benefits of the acquisition of BA Connect.
“This year, with passenger volumes of over 7 million being flown on 520 flights a day across a route network of over 190 destinations being sold under the Flybe brand, serving the major business and leisure destinations of Europe, Flybe can count itself as one of the major players in the airline industry which is a remarkable achievement.
“With current fuel costs at 24% of total costs, Flybe’s fuel costs represent one of the lowest percentage burdens in the industry. With one of the most fuel-efficient fleets and a passenger base that is less dependent upon discretionary leisure spend, Flybe is continuing to perform strongly in the current difficult environment. In the first quarter’s trading of this year, both revenues and operating profits were significantly higher than in the same period last year.
“The combination of our long-term strategy, focussed management actions and strong cash position gives us a major opportunity to maximise the opportunities that will surely come as the industry enters a period of consolidation.”