Flybe back in profit

Exeter-based Flybe this morning announced pre-tax annual profits of £2.7m.

The figure compares with a loss of £35.6m the previous year and was helped, in part, by cheaper fuel prices.

The company said there had been an 8.2% increase in passenger revenue and 5.9% increase in passenger numbers but that conditions remained "challenging".

Saad Hammad, chief executive, who is steering the company through a three year turnaround plan said: "We delivered top-line growth in a difficult revenue environment, expanding our network and carrying more passengers than last year."

The company said it had driven down costs and found new uses for its surplus Embraer E195 jets which it described as its "last key legacy issue."

"As a result of all the action we have taken, Flybe is now a much more resilient business and well positioned for profitable growth," Mr Hammad added.

Mr Hammad, is a former director of Air Berlin and easyJet.