Just as some other European airlines are snapping up excess capacity from collapsed rivals such as Monarch and Air Berlin, Flybe (FLYB) is downsizing. Network capacity during the second half of the financial year fell by 5.2 per cent, compared with an 11 per cent increase during the corresponding period in FY2017. Available seat numbers have also been pared back, as the European carrier looks to build the load factor (utilisation rate) and revenue per seat.
Chief executive Christine Ourmières-Widener said the fleet size is now “under control”. Passenger revenue increased by 9.1 per cent to £676m, but cost per seat was up 10.9 per cent mainly due to higher maintenance costs and weak sterling. As a result, Flybe reported a £14.8m operating loss – better than the £31m loss in the prior year. The previous year’s results have been restated to account for an onerous lease provision, resulting in a £28.6m adjustment in the year to March 2017, and £1.3m in the reported period.
Analysts at broker Numis expect a £4.9m pre-tax loss in the year to March 2019, giving a loss per share of 2.3p, compared with losses of £13.8m and 6.4p in FY2018.
| FLYBE (FLYB) | ||||
| ORD PRICE: | 37p | MARKET VALUE: | £80.6m | |
| TOUCH: | 36-37p | 12-MONTH HIGH: | 50p | LOW: 30p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 43p | NET DEBT: | 63% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 621 | 8.1 | 9.6 | nil |
| 2015 | 574 | -23.6 | -16.5 | nil |
| 2016 | 624 | 2.7 | 3.1 | nil |
| 2017* | 707 | -48.5 | -26.3 | nil |
| 2018 | 753 | -9.4 | -4.5 | nil |
| % change | +6 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Restated | ||||
