Costs for the financial year ended March 31 rose about 2.5 percent in line with guidance, the Exeter, England-based carrier said in a statement today. Group revenue will be in line with that of last year, when it was 615.3 million pounds ($943 million), it said.
Flybe Chief Executive Officer Jim French announced details of a cost-reduction plan in January. The airline’s regional focus means Flybe has higher unit costs and fares than discount carriers such as Ryanair Holdings Plc (RYA) and EasyJet Plc. (EZJ)
“The group has been taking significant actions to restore profitability,” Flybe said today in the statement. Initial cost-cutting efforts should allow the airline to beat a 25 million-pound target in the current year, it said.
The airline ended the financial year with 54.4 million pounds in cash.
Flybe shares have declined 18 percent this year in London trading, giving the company a market value of 31.6 million pounds.
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