Profit Warning
View attachment 10481
Flybe's woes continue with the company issuing a full-year profit warning this morning in a trading update ahead of its results for the first six months of 2018. A full-year tax loss of £12 million is now anticipated which follows a £19.2 million loss in 2017.
Flybe attributes the situation to higher fuel prices, the lower value of sterling and weaker customer demand.
The airline is reviewing further capacity and cost-saving measures along with its current strategy which sees it concentrating on its most popular routes. This has seen passenger seat revenue increase by around 8% but yield was down by 2%.
The profit warning saw over a third of the company's value wiped off this morning with shares now trading around 20 pence.
Since Flybe floated on the stock market at 295 pence per share in 2010 the story has been one of an almost continuous reduction in the company's value.
I've been reading the financial press this morning and there is now a body of opinion that cannot see Flybe continuing in its present form for much longer. The CEO is naturally making optimistic noises - she can't do anything else - but the airline has tried to become all sorts of things since its flotation, none of which has so far worked.
It might be with the share price now so low that someone will be interested in purchasing the airline and will invest some capital. It's hard to see another airline being interested because I can't think of one where a synergy exists, although Stobart might be tempted if they can buy Flybe dirt cheap. But would they want to?
Photo by mathers_wales_uk
View attachment 10481
Flybe's woes continue with the company issuing a full-year profit warning this morning in a trading update ahead of its results for the first six months of 2018. A full-year tax loss of £12 million is now anticipated which follows a £19.2 million loss in 2017.
Flybe attributes the situation to higher fuel prices, the lower value of sterling and weaker customer demand.
The airline is reviewing further capacity and cost-saving measures along with its current strategy which sees it concentrating on its most popular routes. This has seen passenger seat revenue increase by around 8% but yield was down by 2%.
The profit warning saw over a third of the company's value wiped off this morning with shares now trading around 20 pence.
Since Flybe floated on the stock market at 295 pence per share in 2010 the story has been one of an almost continuous reduction in the company's value.
I've been reading the financial press this morning and there is now a body of opinion that cannot see Flybe continuing in its present form for much longer. The CEO is naturally making optimistic noises - she can't do anything else - but the airline has tried to become all sorts of things since its flotation, none of which has so far worked.
It might be with the share price now so low that someone will be interested in purchasing the airline and will invest some capital. It's hard to see another airline being interested because I can't think of one where a synergy exists, although Stobart might be tempted if they can buy Flybe dirt cheap. But would they want to?
Photo by mathers_wales_uk
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