Flybe has reported a sharp drop in profits due to IT and aircraft maintenance cost issues.
The group saw adjusted pre-tax profits for the six months to September 30 fall year on year from £15.9 million to £8.4 million due to an “onerous” IT contract and rising maintenance costs. Non-adjusted pre-tax profits rose from seven million pounds to £15.1 million due, the airline said, to revaluation gains of £6.7 million on dollar-based aircraft loans.
Flybe chief executive Christine Ourmieres-Widener said reductions in the airline’s fleet size meant load factors would rise and yields “would stabilise”.
The carrier saw a four percentage point increase in load factors to 76 per cent during the period. Average revenue per seat increased 8.8 per cent to £55.29. She added: “While half-year profits are lower than last year, due to the one-off IT contract costs, higher maintenance expenses and the impact of the fall in the value of sterling, I am confident that we are on a clear path to sustainable profitability through the investments and improvements we are making at Flybe“.