Record Profits expected by Flybe

Economy airline, Flybe negated market predictions by asserting that the company was looking forward to announcing extraordinary profits for year ending 2008. Flybe, in the wake of its success could also consider acquiring competitors who have been unable to deal with rising fuel expenses.

Analyst predictions that small airlines would perform poorly this financial year have been tossed aside by Flybe. The airline is confident that its revenues for the three months of April, May and June will outshine those of the same period in the last financial year.

These statements from Flybe follow Ryanair’s expectations of suffering annual losses of £47m. This, according to Ryanair is due to rise in fuel expenses. British Airways suffered a slump in pre-tax earnings for the period between June and August from £298m last year to £37m this year also put the blame squarely at the door of fuel expenses.

With flight services to Edinburgh, Manchester, Dublin, Jersey and Guernsey from Norwich International, Flybe stated that its yearly performance ending 2008 will be over and above last year’s figures of £355m turnover and £15.6m pre-tax profit.

Flybe spokespersons stated that despite rise in airline fuel by 100pc, Flybe’s fuel costs consumed just 24pc of its entire operating expenses. This was much lower than Ryanair’s figures of 50pc. Flybe was also geared to face challenges in terms of fuel expenses. Given its status as the biggest regional flying service in Europe and the 8 mn travelers that it will be catering to, it had to be well-prepared. Hence their flight services were strategically planned to counter issues with fuel costs.

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