Recession, expansion and fuel send airline Flybe plunging to loss

The carrier, which operates from Leeds Bradford, Humberside and Robin Hood Doncaster Sheffield airports, posted underlying pre-tax losses of £7.1m for the year to the end of March, versus £22.3m profits a year earlier.

This was despite revenues increasing 14 per cent to £679m and passenger numbers growing 5.8 per cent to 7.6m.

Flybe, Europe’s biggest regional airline, now has a 28 per cent UK market share, up from 27 last year and 14.1 in 2007.

Flybe insisted it has the “scale and substance” to ride out the tough environment.

“Flybe is well-placed to take advantage of any improvement in the UK macro environment and has a strong platform in Europe to leverage, leaving the group strongly placed for the future,” said chairman and chief executive Jim French.

The airline said the bulk of the losses were down to its expansion in Europe, including its joint venture in Finland, plus management costs.

The airline, which axed its Leeds to London Gatwick service in March last year, underlined its importance to the UK economy while criticising rising air passenger duty (APD).

“Flybe, and other regional airlines, play a critical role in facilitating regional economic and business development,” said Mr French. “Indeed, we are a lifeline to certain regions.

“It is extraordinary that our passengers continue to be hit by continuing rises in APD.”