Flybe share price rises

Exeter-based Flybe's share price improved this morning as the airline  released its latest finacial figures.

Flybe, which issued an encouraging trading update for the first quarter, said it had managed to cut the cost of a UK seat by 3.4 per cent to £51.92.

The budget airline share price was up 6.3 per cent in early trading on the back of an upbeat trading statement, reporting “sustained passenger and revenue growth” saying it was now in “the next chapter of its transformation”.

Seat capacity climbed 12.3 per cent to 2.8m seats, while passenger numbers grew 9.8 per cent to 2.1m. Revenues were up 11.6 per cent to £147.7m.Flybe reports a positive start to the year, with sustained passenger and revenue growth, as it continues the next chapter of its transformation.

The full figures are as follows:

The return to growth delivered in the previous quarter has continued
·           12.3% increase in seat3 capacity to 2.8m seats (Q1 2014/15: 2.5m seats).
·           9.8% growth in passenger2 numbers to 2.1 million (Q1 2014/15: 1.9m passengers).
·           11.6% growth in passenger revenue6 to £147.7m (Q1 2014/15: £132.3m).

Encouraging unit revenue development, given capacity growth
·           0.7% improvement in passenger yield5 to £70.33 (Q1 2014/15: £69.81).
·           1.7ppts decrease in load factor4 to 74.1% (Q1 2014/15: 75.8%).
·           1.6% decrease in revenue per seat to £52.12 (Q1 2014/15: £52.94).

Continued reduction in unit cost
·           3.4% reduction in UK costs per seat (excluding surplus aircraft costs) to £51.92.
·           Long term solutions for seven surplus E195s being actively pursued.  Maximum exposure is £80m over four years. Exit costs are being targeted significantly below this figure.

New routes delivering top line growth
·           30 new routes launched this Summer including nine at Cardiff and nine at Bournemouth.
·           Winter frequency increases on key routes, to address better the needs of time-sensitive travellers.
·           New codeshare signed with Emirates on 25 Flybe routes across the UK

Q2 2015/16 current trading (capacity and bookings as at 17th July)
·           16% increase in seat capacity vs. prior year.
·           11% increase in passenger revenue vs. prior year.
·           47% of seats sold vs. c50% in the prior year.
·           2.4% increase in yield vs. prior year.
·           4.1% decrease in revenue per seat vs. prior year.

Saad Hammad, Chief Executive Officer, said: “As we enter the next phase of our transformation, Flybe has again delivered revenue and passenger growth in the quarter, demonstrating the strength of our core business.  We carried significantly more customers than the same time last year and maintained our industry-leading punctuality levels. We remain focused on tackling the surplus E195 aircraft, our final legacy issue, and are actively pursuing a range of solutions.”