TIDMFLYB
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: +44 (0)20 7379 5151
Philip de Klerk, Chief
Financial Officer
Maitland Tel: +44 (0)20 7379 5151
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
END
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