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Flybe up for sale weeks after profit warning | |
(about 9 hours later) | |
Flybe has put itself up for sale, just weeks after issuing a profit warning. | |
The Exeter-based regional airline's board confirmed it was "in discussions with a number of strategic operators about a potential sale of the company". | |
Flybe said it was reviewing "various strategic options" to address "current challenges" in the airline industry. | |
Last month, the airline warned full-year losses would be £22m, blaming falling consumer demand, a weaker pound and higher fuel costs. | |
Latest results, published on Wednesday, show that pre-tax profits for the six months to 30 September fell by 54% to £7.4m, on revenues down by 2.4% to £419.2m. | |
The airline's shares have fallen by almost 75% since September. | The airline's shares have fallen by almost 75% since September. |
The Exeter-based airline is now valued at about £25m, far below the £215m it was valued at when it floated on the stock exchange in 2010. | |
In a statement, it said that other options open to it included "further capacity and cost-saving measures, initiatives to strengthen the balance sheet and preserve cash resources". | |
Stobart Group - which pulled out of a bid to buy Flybe earlier this year after the airline rejected its offer - could be a possible purchaser, according to Sky News. | |
Flybe, whose roots date back to 1979, has 78 planes operating from smaller airports such as London City, Southampton and Norwich to destinations in the UK and Europe. | Flybe, whose roots date back to 1979, has 78 planes operating from smaller airports such as London City, Southampton and Norwich to destinations in the UK and Europe. |
It serves about eight million passengers a year, but has been struggling to recover from a costly IT overhaul and has been trying to reduce costs. | |
Last month, Flybe's chief executive, Christine Ourmieres-Widener, said it was reviewing "further capacity and cost-saving measures". | |
"Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," she said at the time. | "Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," she said at the time. |