Flybe warns higher than expected maintenance costs will hit profits

Flybe warns higher than expected maintenance costs will hit profits

Flybe today warned that it incurred higher than expected costs in the first half of the year following a detailed review of aircraft maintenance.

This reflected a drive to further improve the reliability of its aircraft, particularly the Bombardier Q400 turboprop, with improvements already being seen, according to the regional carrier.

A full review of the maintenance strategy has now been started which aims at a “significant improvement” of aircraft performance and costs.

Adjusted profit before tax is currently expected to be in the range of £5 million to £10 million for the first half of the financial year – down from £15.9 million in the same period a year earlier.

This is after charging additional IT costs of around £6 million in the first half of the year related to the development of a new digital platform, as previously announced.

Chief executive Christine Ourmieres-Widener, said: “While half-year profits are lower than expected, I am confident that we are still on a clear sustainable path to profitability in line with our stated plan.

“The increased maintenance costs are disappointing, but we are already addressing these in the second half and remain focused on improving our cost base and reliability performance.

“Our sustainable business improvement plan is delivering benefits with the fleet size now reducing, and consequently both yield and load factors are increasing.

“The net debt, as expected, remains broadly in line with year ended 31 March 2017.”

Flybe will announce its interim results on November 9, when further information will be provided.


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