Flybe Group PLC Trading Statement (7034T)

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RNS Number : 7034T

Flybe Group PLC

22 July 2015

Flybe Group plc

('Flybe' or 'the Group')

22 July 2015

Q1 2015/16 TRADING STATEMENT

FLYBE CONTINUES TO GROW

Flybe reports a positive start to the year, with sustained passenger and revenue growth, as it continues the next chapter of its transformation.

The return to growth delivered in the previous quarter has continued

   --       12.3% increase in seat(3) capacity to 2.8m seats (Q1 2014/15: 2.5m seats). 
   --       9.8% growth in passenger(2) numbers to 2.1 million (Q1 2014/15: 1.9m passengers). 
   --       11.6% growth in passenger revenue(6) to GBP147.7m (Q1 2014/15: GBP132.3m). 

Encouraging unit revenue development, given capacity growth

   --       0.7% improvement in passenger yield(5) to GBP70.33 (Q1 2014/15: GBP69.81). 
   --       1.7ppts decrease in load factor(4) to 74.1% (Q1 2014/15: 75.8%). 
   --       1.6% decrease in revenue per seat to GBP52.12 (Q1 2014/15: GBP52.94). 

Continued reduction in unit cost

   --       3.4% reduction in UK costs per seat (excluding surplus aircraft costs) to GBP51.92. 

-- Long term solutions for seven surplus E195s being actively pursued. Maximum exposure is GBP80m over four years. Exit costs are being targeted significantly below this figure.

New routes delivering top line growth

   --       30 new routes launched this Summer including nine at Cardiff and nine at Bournemouth. 

-- Winter frequency increases on key routes, to address better the needs of time-sensitive travellers.

   --       New codeshare signed with Emirates on 25 Flybe routes across the UK 

Q2 2015/16 current trading (capacity and bookings as at 17(th) July)

   --       16% increase in seat capacity vs. prior year. 
   --       11% increase in passenger revenue vs. prior year. 
   --       47% of seats sold vs. c50% in the prior year. 
   --       2.4% increase in yield vs. prior year. 
   --       4.1% decrease in revenue per seat vs. prior year. 

Saad Hammad, Chief Executive Officer, said:

"As we enter the next phase of our transformation, Flybe has again delivered revenue and passenger growth in the quarter, demonstrating the strength of our core business. We carried significantly more customers than the same time last year and maintained our industry-leading punctuality levels.

We remain focused on tackling the surplus E195 aircraft, our final legacy issue, and are actively pursuing a range of solutions."

 
 Enquiries: 
  Flybe                      Tel: [phone] 
  Philip de Klerk, Chief 
  Financial Officer 
 Maitland                  Tel: [phone] 
  Neil Bennett 
  Andy Donald 
 

Flybe UK KPIs

 
                                   Quarter    Quarter       Change 
                                        to         to            % 
                                   30 June    30 June 
                                      2015       2014 
-------------------------------  ---------  ---------  ----------- 
 Seats and passengers 
 Scheduled seats(1) (million)          2.8        2.5         12.3 
 Passengers (million)                  2.1        1.9          9.8 
 Load factor (%)                      74.1       75.8   (1.7 ppts) 
-------------------------------  ---------  ---------  ----------- 
 
 Revenue 
 Passenger revenue (GBPm)            147.7      132.3         11.6 
 Contract flying revenue 
  (GBPm)                               2.4        3.9       (38.5) 
 Revenue from other activities 
  (GBPm)                               2.6        2.9       (10.3) 
-------------------------------  ---------  ---------  ----------- 
 Total Flybe UK revenue 
  (GBPm)                             152.7      139.1          9.8 
-------------------------------  ---------  ---------  ----------- 
 
 Yield 
 Passenger yield (GBP)               70.33      69.81          0.7 
-------------------------------  ---------  ---------  ----------- 
 
 Passenger revenue per seat 
  (GBP)                              52.12      52.94        (1.6) 
-------------------------------  ---------  ---------  ----------- 
 
 

Hedging

Flybe UK's current hedge books7 @ 20 July 2015 are summarised below (all hedges are forward swaps).

Jet fuel

   --      Q2 2015/16 - 78% hedged at $931 per tonne 
   --      H2 2015/16 - 81% hedged at $855 per tonne 
   --      H1 2016/17 - 64% hedged at $676 per tonne 

US Dollar

   --      Q2 2015/16 - 67% hedged at $1.66 
   --      H2 2015/16 - 65% hedged at $1.57 
   --      H1 2016/17 - 39% hedged at $1.53 

Carbon

   --      Calendar year 2015 - 100% hedged at EUR5.42 per tonne 
   --      Calendar year 2016 - 68% hedged at EUR6.79 per tonne 

Flybe UK currently has a broadly neutral position in Euro income and expenditure.

END

Notes:

   1.             Scheduled seats are the number of seats flown on Flybe scheduled services. 

2. Passengers are people with an issued ticket where the ticket has charged a fare and/or a passenger surcharge and tax (if applicable). This includes people who purchase a ticket and do not show up for the flight where, as is usually the case, the ticket is non-refundable.

   3.             Seats represent the number of scheduled seats flown. 
   4.             Load factor is the number of passengers divided by seats flown. 
   5.             Passenger yield represents passenger revenue per passenger. 

6. Passenger revenue represents total ticket and ancillary revenue including hard block less refunds (Passenger revenue per seat represented total ticket and ancillary revenue per seat in 2014/15 Q1 IMS)

   7.             Based on anticipated fuel, USD and carbon requirements 

Forward-looking statements:

Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and Flybe Group plc ("the Group") plans and objectives for future operations, including, without limitation, discussions of the Group's Business Plan, expected future revenues, financing plans and expected expenditures. All forward-looking statements in this report are based upon information known to the Group on the date of this IMS. The Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific events that could cause the Group's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of the business. Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2013/14; these documents are available on http://www.flybe.com/corporate/investors.

This information is provided by RNS

The company news service from the London Stock Exchange

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