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Improved Q2 performance boosts Flybe shares

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Shares in Flybe jumped yesterday after the regional airline notched double-digit increases in capacity, passenger numbers and revenue in its second quarter.

And the carrier revealed eight new pilot jobs will be created at Inverness Airport when its franchise partner, Paisley-based Loganair, takes over the operation of Flybe flights to Manchester and Dublin.

Flybe also said it was still “determined” to offload the remaining E195 jets from its fleet.

The flier originally had 14 of the aircraft, but they were deemed to be too expensive to run.

Last week, the company said it had agreed a five-year deal with Rigby Group-owned Regional & City Airports for one E195 aircraft to serve Exeter and Norwich airports. The deal left Flybe with six left to shift.

Flybe spent £26million on storing and maintaining the jets during the year ended March 2015.

The airline is in the second year of a transformation plan that has seen it axe jobs and underperforming routes to offset a drop in passenger numbers in the wake of the financial crisis.

Flybe chief executive officer Saad Hammad said its trading figures for its second quarter, which covers July, August and September, showed the airline is on track to deliver on the plan.

Exeter-based Flybe hoisted its seat capacity to three million seats during the three months, up 14% year-on-year. It carried 2.4 million people in the second quarter, a 11% increase, and enjoyed a 13% lift in passenger revenue.

Revenue per seat dipped 1% against 2014, however.

Flybe shares closed up 4.85% to 81p as of mid-afternoon yesterday on the news of its improved second quarter performance.

Mr Hammad said: “Flybe’s turnaround continues, with our third successive quarter of revenue, capacity and passenger number growth, against the very competitive market provided by other airlines and road, rail and ferry services.”

The company operates from all the major Scottish airports and smaller ones in the Highlands and islands.

It offers direct flights to nine locations from Aberdeen and to 11 locations from Inverness.