Regional airline Flybe yesterday said it has made a “positive” start to its financial year, but warned that surplus-aircraft costs could drain £80million from the firm.
Budget carrier EasyJet, meanwhile, increased its annual profits outlook, buoyed by a jump in passenger numbers in the three months to the end of June.
Shares in Flybe went up by more than 16% after the Exeter-based airline said it had carried 2.1 million passengers in its first quarter, which runs from April 1 to June 30, a 9.8% increase year-on-year.
Passenger revenue went up 11.6% to £147.7million, almost matching the increase in seat capacity of 12.3%.
Revenue per seat fell 1.6% to £52.12, however.
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 cancelled its service between Inverness and London City in February citing disappointing passenger figures. The route had only been introduced the previous October.
Last month, Flybe chief executive Saad Hammad insisted the turnaround was on track despite revealing pre-tax losses of £35.6million for the full year ending March 31, 2015, while group revenue fell 7.5% to £574million.
The company also said it had spent £26million that year on storing 14 E195 jets it no longer needs, but that solutions had been found for half of them.
Yesterday, Flybe said it is actively pursuing “long term solutions” for the remaining seven aircraft, which carry a maximum exposure of £80million over four years.
“Exit costs are being targeted significantly below this figure,” Flybe added.
Commenting on the latest figures, Mr Hammad said the company has demonstrated its “core strength” with improved revenue and passenger figures.
He said: “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.”
Shares in Flybe increased in value by more than 10% as of mid-afternoon yesterday.
The company operates from all the major Scottish airports and smaller ones in the Highlands and islands.
It had created 100 jobs when it reinstated its Aberdeen base in March this year. It had closed the base in January 2014 as part of its cost-cutting regime, though it continued to operate flights from the airport.
Luton-based EasyJet said it expects to book full-year pre-tax profits of between £620million and £660million, thanks to a 6.2% year-on-year increase in passenger figures to 19.1 million.
EasyJet raked in £581million the previous year, and analysts had been forecasting profits of £623million this time around.
The airline said UK holidaymakers flying to popular beach routes had boosted its figures and offset the impact of hundreds of flight cancellations caused by French air traffic control strikes and a fire at Rome’s Fiumicino airport.
The update sent its share price up by 5% on the London stock exchange.