Flybe (Exeter) plans to cut another 500 jobs after it posted its first half-year profit in two years.
Read the full report from Reuters: CLICK HERE
The company issued this financial statement:
Results for the six months to September 30, 2013:
Flybe announces a significantly improved financial performance under its new management team. In addition, a new phase of efficiency improvements announced today will secure a strong base for future growth.
Key financial highlights
|H1 2013/14£m||H1 2012/13£m||Change%|
|Total revenue under management *||477.3||396.3||20.4|
|Less: joint venture revenue||(126.2)||(55.5)||127.4|
|Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans ** +||12.2||(2.3)||N/M|
|Adjusted profit/(loss) before tax and restructuring *** +||17.1||(1.6)||N/M|
|Profit/(loss) before tax +||13.8||(1.6)||N/M|
|Profit/(loss) after tax +||13.6||(1.6)||N/M|
* Includes Flybe’s joint venture, Flybe Finland.
** Adjusted profit/(loss) before tax, restructuring and surplus capacity costs and revaluation on USD aircraft loans defined as profit/(loss) before tax, restructuring and surplus capacity costs of £4.1m (2012/13: £nil) and revaluation gains on USD aircraft loans of £5.7m (2012/13: £0.7m). Surplus capacity costs represent the costs incurred in H1 2013/14 relating to capacity that is considered by management to be surplus as a result of the restructuring decisions.
*** Adjusted profit/(loss) before tax and restructuring defined as profit/(loss) before tax and restructuring costs of £3.3m (2012/13: £nil).
+ H1 2012/13 has been restated for the impact of adopting the revised requirements of IAS 19 Employee Benefits as detailed further in Note 2 to the condensed financial statements. The replacement of the interest cost and expected return on plan assets with a new interest charge on the net defined benefit liability led to a £0.3m increase in the reported loss for that period.
1. First two phases of the Turnaround Plan on track to deliver savings of £40m this year and £45m in 2014/15.
2. A 20.4% increase to £477.3m (H1 2012/13: £396.3m) in revenue under management (including Flybe Finland, the joint venture with Finnair) largely driven by increased contract flying activity in Finland.
3. A 3.0% increase in group revenue to £351.1m.
4. A £13.8m profit before tax (H1 2012/13: loss of £1.6m).
5. A £10.5m operating cash inflow before increase in restricted cash and restructuring costs (H1 2012/13: £1.6m)
Operational highlights (H1 2013/14)
– 6.2 million scheduled seats flown, in line with last year.
– 5.6% increase in passengers to 4.3 million.
– 3.6ppts increase in load factor to 68.6%.
– 0.9% increase in passenger revenue per scheduled seat to £50.35 (H1 2012/13: £49.92).
– 1.3% increase in total revenues to £328.2m.
– 1.3% decrease in costs per seat to £51.30. On a constant currency and fuel price basis, costs per seat decreased by 3.1%.
– 4.7% increase in UK regional sector share for the Flybe brand to 55.1%.
– 26.4% of Flybe’s revenue under management (H1 2013/14: £126.2m; H1 2012/13: £55.5m).
– £110.6m contract flying revenue (H1 2012/13: £36.7m)
– 84.6% increase to 2.4 million in total seats flown, of which white label flying totalled 2.0 million (H1 2012/13: 0.8 million).
Flybe aims to become the best local airline in Europe delivering unrivalled regional connectivity.
Flybe will have two engines of growth:
A regional branded airline giving a nimble and customer-friendly, scheduled service for both business and families. This brings people together within a country and connects people in the regions to international carriers at metropolitan airports.
A regional white label model where Flybe will become the leading regional provider for mainstream European airlines.
The already announced Phase 1 and 2 cost savings are being successfully implemented.
Major management and organizational change: new Chairman and Chief Executive Officer have been appointed. Senior executive appointments well advanced, including a new Chief Commercial Officer already in place.
Flybe’s operations have been reorganized into a single management structure.
An Immediate Action plan is being announced today and is already being implemented with three elements:
1. Optimise configuration: rationalise route network, review fleet mix, remove surplus capacity and improve aircraft and crew utilisation.
2. Reduce costs further: all aspects of the business are being reviewed to drive further savings.
3. Improve commercialisation: optimise pricing and revenue management, refocus network development, strengthen route management, step change marketing impact and develop trading partnerships.
This will deliver further benefit of £7m this year and £26m next year with around 500 proposed redundancies and estimated one-off and surplus capacity costs of £14m this year plus a further £27m in 2014/15.
Finnair JV is now profitable; further improvements are being targeted by enhancing operational delivery, reducing scheduled risk flying losses and embedding ‘lean manufacturing’ techniques.
Update: According to Reuters, majority shareholder Rosedale Aviation Holdings has sold its entire 48.1 percent stake in the airline to institutional investors.
Read the full report: CLICK HERE
Copyright Photo: Antony J. Best/AirlinersGallery.com. Embraer ERJ 190-200LR (ERJ 195) G-FBEB (msn 19000057) lands at Southampton.