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Flybe Group plc Preliminary Results for the Year Ended 31 March 2012

11 June 2012

Flybe, Europe’s largest regional airline and the UK’s number one domestic airline brand, announces results for the year ended 31 March 2012.


Key financials

Flybe’s results for the year to 31 March 2012 are in line with expectations.

Revenue under management678.8595.514.0
Group revenue615.3595.53.3
EBITDAR – underlying *88.8113.8(22.0)
EBITDAR – unadjusted88.895.7(7.2)
(Loss)/profit before tax – underlying **(7.1)22.3n/m
Loss before tax – unadjusted(6.2)(4.3)(44.2)
(Loss)/profit after tax(6.4)3.8n/m
Operating cash inflow3.018.1(85.6)
Net (debt)/cash ***(29.7)21.9n/m

*       EBITDAR is defined as operating profit or loss after adding back unrealised gains and losses on fuel and foreign exchange hedges, IPO expenses, depreciation, amortisation and aircraft rental charges.  Underlying EBITDAR is EBITDAR after adding back the estimated impact of the disruption caused by volcanic ash and winter weather in 2010/11. 

**     Underlying (loss)/profit before tax is defined as loss before tax before revaluation gains on USD aircraft loans in 2011/12 and, in 2010/11, the estimated impact of the disruption from volcanic ash and winter weather, unrealised gains and losses on fuel and foreign exchange hedges and IPO expenses.

***   Net (debt)/cash includes restricted cash


Growing in a tough market

  • Revenue under management growth of 14.0% to £678.8m (2010/11: £595.5m)
  • Group revenue growth (excluding joint venture) up 3.3% to £615.3m (2010/11: £595.5m)
  • Passenger numbers under management up 5.8% to 7.6 million (2010/11: 7.2 million)
  • Growing the fleet under management to 83 aircraft with an average age at year end of 4.6 years (2010/11: 69 aircraft with an average age of 4.3 years)

Leading the UK domestic market

  • Leading airline brand in the UK domestic market with 28.0% market share (2010/11: 27.0%)
  • Operating from 14 UK bases and serving 102 airports in total throughout the UK and 17 other European countries
  • Flybe UK’s passenger revenue per seat up 3.7% to £48.71 (2010/11: £46.96)
  • Creation of Manchester regional hub
  • Re-positioning Flybe UK to a more customer focussed and transparent pricing model under the strapline ‘Making flying better’


Delivering on Flybe’s strategic objectives

  • Commencing our development of Continental European based operations through our joint venture with Finnair established in August 2011 and recently expanded to comprise 28 aircraft, 20 of which will be deployed under contract flying arrangements
  • Fleet renewal under way with arrival of first six Embraer E175s, four during the financial year and two subsequently, supported by attractive financing deal from BNDES

Jim French, Chairman and Chief Executive Officer of Flybe, commented:

“Flybe is Europe’s largest independent regional airline, flying over 200 routes from more than 100 airports across 18 countries. It has a robust business model and a clear growth strategy.  Through a continuing focus on managing costs and capacity we are mitigating the impact of the economic downturn in the UK.  We are pleased with the progress we have made with Flybe Finland, underpinning our European expansion plans and the replication of our UK operations.  Meanwhile, our fleet substitution programme, along with a de-risking of the business through a significant increase in contract flying, will have a far reaching beneficial impact on the business and one that will benefit the Group for many years to come.

“We will continue to invest in the Group’s future ensuring that we maintain our market leading regional position in the UK and, at the same time, seeking to build a similar position across Europe.

“We remain in a challenging environment.  However, Flybe today is a business of real scale and substance, and one which has again demonstrated its resilience.  Flybe is well placed to take advantage of any improvement in the UK macro environment and has a strong platform in Europe to leverage, leaving the Group strongly placed for the future.”