Flybe passenger numbers decline; reports pre-tax loss of £40.7m

On Friday, UK carrier Flybe reported a pre-tax loss of £40.7m for the year to 31 March, against a loss of £6.2m the year before.
Flybe said UK passenger numbers fell by 1.1% last year to 7.2 million from 7.3 million. Fuel costs rose to £122.6m from £106.4m the year before.
"Our results for 2012-13, while expected, are nonetheless disappointing. During the year, we have taken difficult decisions as part of our turnaround plan, which have affected all our people," said chief executive Jim French.
"Our turnaround plan has involved considerable efforts to reduce the cost base of the business. Inevitably, and sadly, this process has to date involved the departure of around 490 people from the business.
Flybe overall revenue was £614.3 million – a decline of -0.2% year-on-year. Flybe UK revenue was £575.2 million, down 2.2%, while Flybe Finland revenue grew by 163% to £167.2 million.
Flybe was hit by fuel costs, which increased by 15.2% £22.6 million. Aircraft ownership and maintenance costs also rose significantly by 7.9% to £134.2million.
The carrier’s operating loss was £34.3 million, compared to a loss of £4.9 million in the year ago period.