Flybe hits turbulence as revenues fall
a FURTHER fall in demand for domestic flights in the UK over recent months has triggered a profits warning at airline Flybe.
Shares in Flybe fell more than 20 per cent after Europe’s biggest regional flier said revenues in the final three months of 2011 would be significantly lower than it had hoped, fuelling fears in the City for a full-year loss.
Flybe said the UK domestic market suffered an underlying sales decline of 8 per cent in its third quarter compared to a 6 per cent drop in the previous half-year, with December being “particularly disappointing”.
Although the Exeter-based airline grew its market share by keeping its sales and passenger numbers flat on the same period a year ago, it has been forced to scrap planned increases in margins.