Flybe has stated that its third quarter was below expectations and that it is unlikely to make up the shortfall in the final three months. Shares in the UK regional airline fell 21% on the news. Flybe blamed "challenging" market conditions, which it says will continue until at least March.
Revenues grew around 20% in the three month period but the UK domestic traveller market, which accounts for 70% of its business, remains under pressure.
Jim French, chairman and chief executive, said: “The UK domestic market is clearly challenging. Under such circumstances, notwithstanding the shortfall against our revenue expectations, I believe that maintaining volumes and growing market share at the expense of planned yield increases was the correct decision to protect the long term potential of Flybe. We have disposed of surplus aircraft this year and reduced our winter capacity in line with the market, and we continue to aggressively manage capacity and costs.”
Flybe shares fall on profit warning
