LONDON — Flybe has today released their half-year financial results for 2018. The carrier’s revenues have increased to £752.6 million with the company delivering an improved commercial performance, especially as they are looking like they are approaching profitability very shortly.
Flybe has released some financial performance results today. They have managed to increase revenues to £752.6 million and managed to reduce losses from £48.5 million in 2017 to just £9.4 million, signalling the high chance for profitability next year. #AvGeek pic.twitter.com/atN2BdiYBR
— James Field (@AvGeekJames) June 19, 2018
The revenue increase represented a 6.4% jump, compared to the £707.4 million figure stated in the previous year. Losses before tax reduced to £9.4 million, compared with a loss before tax of £48.5 million last year, with the carrier saying that bad weather at the start of the year affected the chances of profitability this year.
Flybe has said in their financials that they aim to improve its passenger revenues per seat by 10.9% over the next 12 months, even though they have already improved it by 10.1%. Passenger numbers have also increased in the airline, with the figure increasing by 7.7% to 9.5 million passengers, with the company using 0.9% fewer seats.
Commenting on the results was Flybe’s CEO Christine Ourmieres-Widener:
“Flybe has made significant progress during my first full year as chief executive. With our fleet size under control, we are already delivering improvements to passenger yield, load factors, and revenue. Our Sustainable Business Improvement Plan, launched last year, is enhancing the business in a number of key areas including, network decision-making, revenue management, and commercial performance. Profitability has however been impacted by higher maintenance costs, IT investment and the poor weather in the final quarter. We now have a new senior management team in place, with greater aviation experience, and we are all focused on delivering the business plan through continued improvements to revenue, a renewed focus on cost reduction and therefore achieving profitability.
There is a growing awareness of the importance of regional air connectivity, not just to the economy and in connecting people, but also in connecting customers to long-haul services with increased interest from legacy carriers. This is shown by the success of our new routes in Heathrow and the growth in our codeshares. Flybe has a unique position in UK connectivity and in its relationship with 9 million UK passengers. I look forward to a positive future and would like to thank all Flybe employees for their ongoing support and commitment.”
The Sustainable Business Improvement Plan for Flybe
- Sales and Marketing to Drive Revenue Growth – The aim is to deliver sustainable revenue growth to maximize profitability. They aim to do this by enhancing the customer interface and experience through new digital platforms.
- Network, Fleet & Revenue Optimisation – The aim of creating a sustainably profitable network and determine the fleet size and shape for Flybe’s operations through maximizing revenue opportunities such as new routes etc.
- Operational Excellence – To design and implement a sustainable operational planning structure, delivering a safe, secure, cost-effective customer proposition through improving the safety and security performance in the airline.
- Organisational Excellence – Deliver and design cost-effective organizational structure, with management and staff fully aligned with the company’s objectives.
- Technology Fit for Flybe – Deliver a cost-effective IT service that fully meets Flybe’s customer, operational and internal requirements.
- Cost Improvement Programme – Ensures that Flybe has a sustainable, competitive cost base enabling Flybe to deliver cost-effective flying to customers.
Widener, from her comments, has not expressed any worries about the carrier’s financials as they are at a stage where the airline is on its way back to profitability, something that they have not seen for a few years.
With revenues on the up, and the carrier axing the less profitable routes, it can be said with confidence that Flybe is on their way to the success that they had around 4-5 years ago when they were still in the green.