The trajectory of shares in Flybe (FLYB) mimicked that of an extremely short-haul flight on the day of its half-year results: a positive reaction to the pre-tax profit number soon gave way to a sombre appraisal of the cautious outlook statement. But over the longer term, investors' fortunes depend on the end-game of the airline's four-chapter overhaul plan. Flybe has restructured, modernised its brand and dealt with excess aircraft. Now it has to achieve "profitable growth".
Chief executive Saad Hammad's warning that "competitive pressures are expected to grow in the second half" suggests the group has a tough task ahead. But there were positives to draw from the interim numbers. Capacity rose 13 per cent to 5.9m seats flown, while passenger numbers rose 10 per cent to 4.5m. The group also saw costs per seat fall 7 per cent on a constant-currency basis, helped by fuel but also by the removal of £14.5m in surplus aircraft costs after the group put three excess aircraft to use as part of its Project Blackbird.