Flybe Group PLC Trading Update (4498J)
07 April 2015 - 4:01PM
UK Regulatory
TIDMFLYB
RNS Number : 4498J
Flybe Group PLC
07 April 2015
Flybe Group plc
("Flybe" or "the Group")
Flybe returns to growth as the turnaround gathers momentum
Flybe, Europe's largest regional airline, announces the
following trading update ahead of the announcement on 10th June of
its results for the year ended March 31 2015.
Flybe saw a return to growth in both seat capacity and revenue
in the final quarter of the year, having completed the first year
of its three year turnaround and is positioned well to continue its
positive momentum.
The airline delivered 15% additional capacity in Q4 2014/15, but
held its load factors constant and delivered 15% passenger growth.
The required yield investment associated with the new capacity and
lower spot fuel prices were more than offset by higher passenger
volumes and overall passenger revenues increased by more than
5%.
Results for the full year to March 31st 2015 are anticipated to
be in line with market expectations, with Flybe on track to achieve
around break-even at pre-tax profit level, before the GBP26m cost
of the E195 jets and any impact of USD loan revaluation, but after
the Finland JV write down of GBP10m and EU261 flight delay
provision of GBP6m.
This outturn would represent an improvement of GBP14m1 on the
previous year's loss2 of GBP9.0m on a comparable basis, excluding
the one-off effects of the Finland JV divestment, the EU261
provision, USD loan revaluations and last year's restructuring
costs, together with the benefit from the sale of Gatwick slots.
This clearly demonstrates the improvement in our core business.
Summer trading is also on track with the additional capacity
selling through as planned. The Company's cash position remains
strong.
Current UK Trading (Q4 2014/15)
-- More than 5% increase in passenger revenue versus prior year
-- 15% increase in capacity versus prior year
-- 15% increase in passenger volumes versus prior year
-- 70% load factor in line with prior year
-- 8% reduction in yield
Summer UK Trading to-date (Q1 2015/16)
-- 9% increase in passengerrevenue versus prior year
-- 13% increase in capacity versus prior year
-- 31% of capacityalready sold, 2ppts behind prior year due toyear-on-year Easter shift
Operational Highlights
Platforms for profitable growth being established.
-- New routes: Newly launched routes at London City and
elsewhere being optimised with capacity diverted to the most
successful. The optimised routes at London City areshowing
promisingprogress with load factors on the biggest reaching 70%
only five months after launch.
-- White Label: six year white label agreement signed with SAS, Scandinavia's largest carrier
-- MRO: eight and a half year contractsigned with Airbus for
maintenance of the Royal Air Force's new fleet of 22 turboprop
A400M Atlas airlifters at Brize Norton.
Significant headway in tackling key legacy issues.
-- Exited the loss-making joint venture with Finnair
-- Exited, without any penalties, the $1bn obligation to buy 24
additional E175 jets from Embraerwith a simultaneous agreement to
secure young, attractively priced turbo-prop Q400s
-- Signed landmark deal with Bombardier to upgradethe reliability of Flybe's45 Q400 aircraft
-- Found solutions through Project Blackbird for 7 of the
surplus 14 E195 jets including a new agreementwith Cardiff Airport
utilizing two of these. In active discussions tofind a
permanentsolution for the remaining 7 jets.
Saad Hammad, Chief Executive, said: "We're pleased to report a
return to growth at Flybe, one year after our capital raise. These
results demonstrate that we are beginning to deliver on the
Company'sgrowth opportunities and that we've tackled the majority
of the Company's legacy issues."
"There is clearly more to do; further improvements in
efficiency, further cost reductions and the resolution of our
remaining surplusaircraft. However,one year into our turnaround, we
have a clear line of sight towards profitable growth."
Enquiries
Flybe Tel: +44 (0) 7912 787948
Philip de Klerk, Chief Financial
Officer
Paul Godfrey, Group Financial Controller#
Maitland (Media) Tel: +44 (0)20 7379 5151
Martin Barrow
Note:
1 Comparable profit for2014/15 would bearound GBP16m, based on a
breakeven (before E195 costs and foreign exchange translation) and
adding back the one off costs of GBP10m Finland JV disposal and
GBP6m EU261.
2 Comparable profit for2013/14 was GBP1.7m, based on a reported
PBTof GBP8.1m, but addingback GBP(1.7)m surplus capacity and
GBP(10.7)m restructuring costs and deducting GBP10.5m profit from
the sale of Gatwickslots and GBP8.3m from foreign exchange
translation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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