Flybe hit by rising fuel costs and weak economy

The British carrier today reported underlying earnings before interest, taxes, depreciation, amortisation and restructuring (EBITDAR) of £88.8m for the year to the end of March. Group revenues rose 3.3 per cent to £615.3m.

It called the performance, which was hit by a 5 per cent decline in its core UK market and £3.7m of losses at its Flybe Europe division, “disappointing”.

Flybe and Finnair last year bought Finland’s biggest domestic carrier Finnish Commuter Airlines (FCA) for $35m to expand in the Baltic market.

It was also negatively impacted by inflationary pressures and high fuel prices.

The company, which floated in London in 2010, said its fuel costs rose 15 per cent to £106.4m during the year.