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Flybe has vowed to press ahead with its cost-cutting drive after reporting a pre-tax loss of £40.7m for the year ending in March.
The Exeter-based airline said the losses – up from £6.2m in 2011/12 – were disappointing but in line with expectations, adding that its turnaround plan had so far exceeded targeted savings.
As part of the efficiency drive announced in January, around 490 people have left the business as a result of redundancy, resignation or transfer to other organisations under outsourcing deals. The departures have included 21 compulsory redundancies.
Chairman and chief executive Jim French said: "We do not underestimate the effect of these difficult decisions on those staff leaving and the friends and colleagues that they leave behind.
"I would like to thank all of our employees, staff and union representatives for their hard work, support and resilience through what is proving to be a very challenging period for the business and its staff."
Members of the British Airlines Pilots Association have agreed to a 5% pay cut in return for extra time off.
The turnaround plan is being partly financed through the £20m sale of Flybe's departure and arrival slots at Gatwick Airport to Easyjet.
The airline has also deferred the delivery of 16 Embraer E175 regional jets and disposed of various other minor assets.
Phase two of the turnaround plan is now being implemented, targeting a further £10m of savings in 2013/14, rising to around £20m from 2014/15.
Mr French said: "Flybe has exceeded its target of taking out £25m from its cost base during 2013/14 and will deliver around £40m in savings in this current financial year, expected to rise to £50m annualised savings from 2014/15 onwards. In the last few months we have streamlined the business, reducing UK-based headcount by more than 20%. We have also made major progress in reducing the cost of our supplier base."
Flybe blamed its latest annual losses on the combined impact of a further 1% underlying decline in its UK's core domestic market, high fuel prices and other cost pressures, notably currency fluctuations resulting in revaluation losses on US dollar denominated aircraft loans.
"Our results for 2012/13, while expected, are nonetheless disappointing," said Mr French. "During the year, we have taken difficult decisions as part of our turnaround plan, which have affected all our people. Challenging as they have been, these decisions were critical to ensuring the future success of Flybe."
The company also revealed that plans to separate Mr French's dual role and appoint a new chief executive are on hold until sufficient progress has been made on the turnaround plan.
On the outlook for the business, he said: "We continue to make real and measurable progress in Europe, with our contract flying business in particular being a stable, income-generating entity which is well positioned for further growth. With Flybe's future cost base significantly improved, the business will now move to reclaim its position as Europe's leading regional airline." Reported by This is 20 hours ago.
Flybe has vowed to press ahead with its cost-cutting drive after reporting a pre-tax loss of £40.7m for the year ending in March.
The Exeter-based airline said the losses – up from £6.2m in 2011/12 – were disappointing but in line with expectations, adding that its turnaround plan had so far exceeded targeted savings.
As part of the efficiency drive announced in January, around 490 people have left the business as a result of redundancy, resignation or transfer to other organisations under outsourcing deals. The departures have included 21 compulsory redundancies.
Chairman and chief executive Jim French said: "We do not underestimate the effect of these difficult decisions on those staff leaving and the friends and colleagues that they leave behind.
"I would like to thank all of our employees, staff and union representatives for their hard work, support and resilience through what is proving to be a very challenging period for the business and its staff."
Members of the British Airlines Pilots Association have agreed to a 5% pay cut in return for extra time off.
The turnaround plan is being partly financed through the £20m sale of Flybe's departure and arrival slots at Gatwick Airport to Easyjet.
The airline has also deferred the delivery of 16 Embraer E175 regional jets and disposed of various other minor assets.
Phase two of the turnaround plan is now being implemented, targeting a further £10m of savings in 2013/14, rising to around £20m from 2014/15.
Mr French said: "Flybe has exceeded its target of taking out £25m from its cost base during 2013/14 and will deliver around £40m in savings in this current financial year, expected to rise to £50m annualised savings from 2014/15 onwards. In the last few months we have streamlined the business, reducing UK-based headcount by more than 20%. We have also made major progress in reducing the cost of our supplier base."
Flybe blamed its latest annual losses on the combined impact of a further 1% underlying decline in its UK's core domestic market, high fuel prices and other cost pressures, notably currency fluctuations resulting in revaluation losses on US dollar denominated aircraft loans.
"Our results for 2012/13, while expected, are nonetheless disappointing," said Mr French. "During the year, we have taken difficult decisions as part of our turnaround plan, which have affected all our people. Challenging as they have been, these decisions were critical to ensuring the future success of Flybe."
The company also revealed that plans to separate Mr French's dual role and appoint a new chief executive are on hold until sufficient progress has been made on the turnaround plan.
On the outlook for the business, he said: "We continue to make real and measurable progress in Europe, with our contract flying business in particular being a stable, income-generating entity which is well positioned for further growth. With Flybe's future cost base significantly improved, the business will now move to reclaim its position as Europe's leading regional airline." Reported by This is 20 hours ago.