More detail on ther website, as follows:
Flybe, one of Europe’s largest and most successful regional aviation groups, is filing accounts for the financial year ended 31 March 2009.
Key financial and performance highlights at a glance:
- Profit before tax of £12.8 million* (2007/08: £35.4 million*)
- Growth in turnover of 6.8% to £572.4 million (2007/08 £535.9 million).
- Growing passenger volume, up to 7.3 million passengers (2007/08 7.0 million).
- Growing ancillary revenues per passenger by 30% to £10.37 (2007/08 £7.97).
* Excludes net exceptional, integration and restructuring charges of £12.7 million (2007/08 £5.0 million)
The period covered by these results includes the height of the global downturn in the world’s financial markets, the spike in oil prices and the onset of global economic recession. It was also one of the most turbulent environments ever experienced by the world’s aviation industry.
Key Highlights
Group Highlights
A profitable performance in a period affected by one of the deepest and most prolonged recessions seen by the aviation industry.
Operating cash inflow before restructuring of £31.4 million generated in the year.
Airline Highlights
Passenger numbers up by 4.3% helped underpin a profitable performance.
Continued progress on Flybe’s balanced ancillary revenue strategy with a 30% increase in ancillary revenue per passenger driven by new value added streams including income from advanced seat assignment and financial services.
Completion of the fleet rationalisation programme (May 2009) which underpins Flybe’s competitive position in the regional airline market. The programme saw 76 aircraft either introduced or retired over a 26 month period leaving Flybe with an average fleet age of under 3 years (May 2009).
Successful launch of our first franchised operations as Loganair began to operate under the Flybe brand during the year. The move helps to cement Flybe’s position in the Scottish aviation market.
Flybe successfully completed the integration of the BA Connect business, realising substantive synergies in overhead and maintenance rationalisation, while enjoying the full economic benefits of substituting 50 seat jets with Flybe’s preferred 78 seat Q400 product.
Flybe was awarded 2009 Regional Airline of the Year by Air Transport World, the first UK airline to hold this title since 1996.
Maintenance, Repair and Overhaul Business-Aviation Services (MRO)
Continued strong progress in our MRO business which was recognised as European Airline MRO of the Year in 2009 by Aviation Week. The unit enjoyed a profitable year with 70% of its revenue now coming from third party customers.
Training Business
In 2009 Flybe took its first steps towards developing a strong aviation training business by securing funding for the building of a new Training Academy, to be based at Exeter, and expected to be completed by the end of 2010.
Jim French, Chairman and Chief Executive, commented: “The Flybe business model was put to the ultimate test during the year and I am delighted to report that it came through with flying colours. In my 40 years in the industry, I have never experienced such a difficult environment and, in that context, we can rightly regard the result for the year as a success. I am proud that Flybe was one of few major airlines to announce a profit in the year.
“Whilst steering Flybe through economic turbulence, we also remained focussed on developing our business and brand. The management team continues to demonstrate both clear strategic focus and agility and I believe this will ensure that Flybe will be one of a handful of European airlines to emerge stronger and more competitive as the recession comes to an end.”
Looking ahead, Mr French added: “Flybe has continued to prove the resilience of its business model and strategy by recording good profits for the half year period to 30 September 2009. The airline is winning market share in a number of key markets and we are seeing substantial rationalisation by our competitors in our key domestic market place. In the first half of 2009/10, Flybe became the UK’s number one domestic airline. The airline is having a good recession and is well positioned to harvest the benefits when more benign economic conditions return. The airline has successfully completed the financing of all its current fleet in the year and has no new aircraft to finance until April 2011- putting it in an enviable position among European airlines.
“The MRO business, Aviation Services, has capitalised on the excellent reputation of the Flybe brand and has expanded the geographic range of its services to Greece where it has supported the start up of the new ‘Olympic Air’. This has been very beneficial during the current financial year and has provided the platform for further developments of this kind.
“The aviation training business has made solid progress and work has commenced on building our flagship Training Academy in Exeter.
“In 8 years since 2002, Flybe has reviewed and invested in every single aspect of its business and as a result is well positioned as the UK and European economies emerge from recession.”
Looks pretty solid to me and nice to see an aviation CEO being upbeat!
