Flybe Share Discussion Threads

[netcurtains] 11/10/2017 07:47

For lazy people. Does read well:

Appointment of Ian Milne as Chief Financial Officer

Flybe Group plc ("Flybe" or "the Company") announces that Ian Milne, Interim Chief Financial Officer, will assume the role of Chief Financial Officer ("CFO") on a permanent basis, with effect from 1 November 2017. Ian has been serving as Interim CFO since joining Flybe on 15 August 2017. As previously announced, Philip de Klerk, the outgoing CFO, left the Company at the end of September.

Prior to joining Flybe Ian had a twenty-year career at British Airways/International Airlines Group, culminating in serving as IAG's Group Financial Controller and BA's Director of Integration. Earlier in his career, Ian worked in the London office of Ernst & Young and later wrote a book on international airline accounting, 'Bridging the GAAP'. He left IAG in 2016 to set up his own consulting business.

[rental] 11/10/2017 07:27

If they have already turned the corner on net profit then this is the most undervalued stock on the market

[rental] 11/10/2017 07:25

Nice to see they have paid out to get the most suitable person for the position.

Strong profits are just round the corner now. And no tax to pay either with the previous losses

[owenski] 11/10/2017 07:18

I think that translates to circa £1m additional revenue added in Sept. alone.

[owenski] 11/10/2017 07:16

From the latest Heathrow commentary:-

"Latin American destinations increased in popularity, with a 9.3% growth in traffic compared to last year, following British Airways launch of a new route to Santiago, Chile at the beginning of the year. South Asian locations also grew strongly as Air India saw passenger numbers aboard their aircraft go up by 21%. Regional airline FlyBe added 20,000 extra passengers to its services within the UK in the month."

[s34icknote] 10/10/2017 18:00

Held up well today net .Lots of buying so may be finally can keep above 40 p !Sicknote

[netcurtains] 10/10/2017 14:02

holding firm, nows the time to test 41 42..... come on guys...
One more push for blightie

[sandoval] 10/10/2017 08:44

120000 buys in first 3 minutes - someone knows something imo.

[guernseymoney] 09/10/2017 20:43

Good article in today's FT about European aviation following the Monarch sh1tstorm - made a key point that there is too much competition and the market is fragmented so consolidation needs to take place.

[kumala] 09/10/2017 20:31

All abit zz zz zz at the moment.....K

[anony mous] 09/10/2017 10:36

Somethings brewing today...

[sporazene2] 07/10/2017 08:46

Dangersimpson, agree that the H1 numbers will drive re-rating if the trends in the Q1 update continues. I haven't seen anything from others in the sector or macro trends since then that lead me to change my opinion. Will also be interesting to see if Hoskins come back into the market for their clients.

[toffeeman] 06/10/2017 17:47

It will take time!

[dahhad] 06/10/2017 16:48

Grounded again!!

[sandoval] 06/10/2017 13:19

At least the general concensus seems to have shifted from "if" to "when" and there was a definite interest after Ourmieres speech in London a few days ago.

[netcurtains] 06/10/2017 11:20

....so the neutral position should be about 47p (neither better or worse than expectations)..

Which equates to another 15% price rise!!!! (for free - the company just has to stay the same)

[dangersimpson2] 06/10/2017 11:12

First objective is another close above 41 probs with a re-test or two. Then it has to crack 50 which will take time methinks.

It all comes down to whether they managed to deliver anything like the +14% Q2 revenue that they had in the pre-bookings in the Q1 Trading Statement. If they deliver +14% and manage to keep costs roughly in line with inflation then they will deliver something like £25m H1 PAT and you would expect the 50p level (a market cap of £108m) would be easily passed.

If the Q2 numbers end up significantly weaker than that or costs have increased in line with revenue, and the PAT is simply in line with the £6m broker forecast, then I would expect us to bump along in the 35p-40p range as people wait to see what impact the reduced seat capacity will have on financial performance.

[curtain twitcher] 06/10/2017 10:52

6 October 2017

One bargain growth stock I’d buy ahead of easyJet plc

When tour operator Monarch collapsed into administration earlier this week, managers at budget airline easyJet (LSE: EZJ) immediately jumped into action.

Not only is the carrier set to benefit from the wave of tourists that now need to rebook their flights, but it is also reportedly bidding on Monarch's coveted Gatwick landing slots. Winning these would enable the firm to increase its capacity from the UK's second largest airport.

And it's not just the collapse of Monarch that will help easyJet grow. Italy's Alitalia SpA and Air Berlin Plc of Germany also filed for insolvency over the summer, taking a chunk of capacity out of the crowded European short-haul market.

Making the most of a crowded market

The demise of the company's weak peers is excellent news for easyJet's outlook. Indeed, in a trading statement published today, CEO Carolyn McCall said: "The current turmoil in the sector provides EasyJet with opportunities to capitalise on its strong customer proposition and grow and strengthen our positions in Europe's leading airports still further."

For the full-year to the end of September, the company now expects to report a pre-tax profit for the year of between £405m and £410m. That's at the high end of previous guidance but is a decline of at least 17% from fiscal 2016's £495m. However, these figures include a £100m hit from the fall in the value of sterling, which is expected to ease to £20m for fiscal 2018. Advantageous fuel hedging should pare the kerosene bill by as much as £145m for the year ending 30 September 2018.

As short-term headwinds abate, City analysts believe easyJet's earnings per share will rebound by 18% next year to 99.4p as pre-tax profit recovers to £478m. Considering these figures, it looks as if at 1,250p, shares in the company are fully valued as they trade at a forward P/E of 12.3, in line with the five-year average.

With this being the case, I believe that the company's smaller, domestic peer Flybe (LSE: FLYB) might be a better buy for growth and value hunters.

Making the most of a dangerous situation

Since 2011, Flybe has struggled to take off. After an ill-advised expansion drive, the company had a near-death experience, and it has taken years for management to sort out the mess. Nonetheless, now capacity has been cut and the group has a strong balance sheet, the airline is well-positioned for growth.

Passengers have responded well to the changes. For the company's first fiscal quarter, revenue was up 11.7% year-on-year as passenger numbers rose 7.1% and the yield per seat increased 7.9% to £51.73.

One of the most attractive qualities about Flybe is that the company has no competition on more than two-thirds of its domestic routes. What's more, the airline is a more attractive proposition than rail. For example, a flight from Cardiff to Aberdeen costs £110 and takes three hours. A similar train journey on the same day (22 November) costs over £200 and takes nine hours.

As the turnaround starts to yield results, for the fiscal year ending 31 March 2019, analysts expect the company to earn 7.2p per share. Based on this estimate, the shares could be worth as much as 87.3p, 120% above today's price if they command the same valuation (12.3 times forward earnings) as easyJet.

Tricky turnarounds

Turnaround situations like Flybe can be tricky to understand. More often than not the turnaround fails and investors lose everything.

To help you navigate these situations, and try to avoid any serious losses, I strongly recommend that you check out this free report, which is designed to help you improve your investment returns in just 10 easy steps.

[toffeeman] 06/10/2017 10:14

First objective is another close above 41 probs with a re-test or two. Then it has to crack 50 which will take time methinks.

[dahhad] 06/10/2017 09:18

not quite boom yet but a few days consolidation over the 40p mark would be good to see followed by good figures for the half-year!!

[kumala] 04/10/2017 14:06

Moving the right way at last....:)K

[s34icknote] 04/10/2017 13:57

Looking good mr easygoing .Lots of buying absorbing the sales Topped up again this morning .Sicknote

[mreasygoing] 04/10/2017 13:16

This is in my stock challenge but no chance of winning this year bbd. Hopefully I'll get a blue finish with a late charge.

[samdb] 04/10/2017 12:37

Cracking chart here. 50p in no time.