Flybe likely to cancel routes as it prepares for 2017 financial loss – due to weak demand
Flybe has not had a good year, and says a tough aviation market will send it into the red, even without other issues to dent its profits. Its share price is down, at £42.50. Flybe said it has suffered from weak demand recently, “in an uncertain consumer environment, together with price competition arising from overcapacity amongst airlines and sharpened price activity from rail operators. … Weather related and operational cancellations, as well as industrial action, mainly by French air traffic controllers, also impacted revenue.” Saad Hammad left as Flybe’s chief executive in the autumn, and it then announced a 70% fall in pre-tax profits at the half year to £7 million. Flybe will be spending £5 – 10 million on e-commerce and review of its IT. Flybe will be reducing the size of its aircraft fleet – now 85 – and “improve efficiency and stop unprofitable flying.” Flybe announced in December that it would be starting flights between Heathrow and Aberdeen and Edinburgh. It got those slots due to commitments required by the European Commission following the acquisition of BMI by International Consolidated Airlines Group (IAG). Flybe already has flights from Aberdeen and Edinburgh to London City airport. The airline has been fined £70,000 for sending more than 3.3 million marketing emails to people who had opted out of receiving them.
Flybe threatens to CANCEL routes as it prepares for 2017 financial LOSS
FLYBE operates more domestic flights than any other airline in the UK, but that could all be about to change.
By CLAUDIA CUSKELLY (Express)
The largest independent regional airline in Europe has warned it may have to cancel some of its routes.
Flybe has cut capacity and costs due to weak demand, pricing pressures and rising competition from rail operators.
The British airline is expected to report a loss when its yearly results are posted at the end of this week.
Flybe is battling a multitude of problems, which include flight cancellations due to the weather.
The airline was also hit in the fourth quarter by French air controller strikes and operational cancellations.
Flybe has warned profits will have dipped by a staggering £5m to £10m compared to last year’s financial results.
Shares in the company dived by 6.4% when today’s announcement was made.
A Flybe spokesperson said: “The period has been characterised by weak demand in an uncertain consumer environment, together with price competition arising from overcapacity amongst airlines and sharpened price activity from rail operators.”
Flybe nosedives on profits warning
By Robert Lea, Industrial Editor (The Times)
March 30 2017
The airline blamed the weather, trains, French industrial action and IT trouble for its poor performance.
Everything that could go wrong is going wrong for the regional airline Flybe, which says a tough aviation market will send it into the red, even without other issues to spook investors.
…. Full article at
Earlier:Flybe, Europe’s largest regional airline, has today announced that it is heading to London Heathrow for the first time next year to connect the UK’s largest international airport with Scotland, offering a choice of more than 40 scheduled flights a week from Aberdeen and Edinburgh. The new routes complement Flybe’s well-established London City flights from the two Scottish airports.Flybe will operate the slots which became available as a result of commitments required by the European Commission following the acquisition of BMI by International Consolidated Airlines Group. Flybe is not required to pay to use the slots, other than meet Heathrow landing and passenger charges. The slots will not be purchased by Flybe and will therefore not be brought onto the balance sheet.
Flybe will be using Heathrow’s Terminal 2 and will offer ‘One Stop to the World’ connectivity to its codeshare and interline partners. Flights have been conveniently timed for both business and leisure travel and fares are from £39.99 one way including taxes and charges.
This route expansion means that, with effect from 26th March 2017, Flybe will offer up to 18 flights a day between London and Edinburgh, and 10 between London and Aberdeen.
Flybe’s Executive Chairman, Simon Laffin, said: “We are delighted to announce our first flights to London Heathrow, significantly enhancing our UK domestic route network and offering even better links between Scotland and London. The new routes to Heathrow complement the existing ones we operate to London City, and will benefit our business customers and customers in Scotland who want to connect with our long haul codeshare partners.
“Flybe is the leading airline serving UK domestic passengers and these new services position us well to serve our passengers in both Scotland and the South East. We have long been lobbying for Heathrow to offer more opportunities for domestic flights to enhance regional connectivity. Whilst other operators may have dismissed the possibility of further domestic routes into Heathrow, we look forward to working with the airport to further expand the range of domestic destinations.”
Heathrow’s Chief Executive, John Holland-Kaye, added: “Improving the connections into Heathrow from all around the UK will be vital in helping to secure the economic future of communities in every corner of the nation. Today’s announcement shows that the measures we’re introducing, such as the £10 reduction on domestic passenger charges, are already working to secure vital links. More airlines flying routes to Scottish airports means more flights, more competition and choice for families, and more visitors to Scotland. With Flybe based at Terminal 2, it also means new, unique direct access from Heathrow to markets such as Colombia, Taipei and Auckland – meaning more opportunity for Scottish businesses looking to reach new export markets.”
UK Aviation Minister Lord Ahmad of Wimbledon commented: “These routes are great news for passengers and businesses who rely on strong links between Scotland and Heathrow, the UK’s major hub airport, opening up more opportunities to connect Aberdeen and Edinburgh with destinations around the world. It is precisely these sorts of connections which make expanding Heathrow the preferred choice for the UK, to deliver an economy that works for everyone.”
Flybe fined for sending 3.3 million unwanted emails
The airline Flybe has been fined £70,000 for sending more than 3.3 million marketing emails to people who had opted out of receiving them.
The emails, sent in August 2016, advised people to amend out-of-date personal information and update their marketing preferences.
They also gave people the chance to enter a prize draw.
But the regulator said Flybe should have obtained people’s consent before sending the emails.
“Sending emails to determine whether people want to receive marketing, without the right consent, is still marketing, and it is against the law,” said Steve Eckersley, head of enforcement at the Information Commissioner’s Office.
“In Flybe’s case, the company deliberately contacted people who had already opted out of emails from them.”
Flybe told the BBC it wanted to “sincerely apologise” to affected customers.
“We can confirm that appropriate mechanisms have already been actioned to ensure that such a situation does not happen again,” it added.