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Flybe downgrades revenue full-year target amid, positive EBITDA result forecast

13-Aug-2012 4:30 PM

Flybe, in its trading outlook, stated (10-Aug-2012) that although forward booking visibility remains extremely limited, the continuing challenges in the UK and Eurozone economies, together with distortions from the Jubilee and Olympics, mean that Group revenue trends for the 12 months to 31-Mar-2013 currently point to year-on-year growth of between flat and 2%, which is below previous expectations. On a cost side, the carrier said it will "continue to maintain a tight control on costs, keeping unit cost increases (excluding fuel) in Q1 2012/13 to within 1% of prior year, despite significant infrastructure and regulatory cost pressures". As a result of the current revenue outlook, the company is targeting further cost saving initiatives through a range of measures, including capacity management and supplier cost reduction. The carrier will be providing an update on these initiatives with its interim results to 30-Sep-2012. The impact of these further initiatives in 2012/13 mean the company expects Group costs excluding fuel to be flat year-on-year and, including fuel, to increase by around 2.5%. The company also expects the group to deliver positive EBITDA and operating cash for the 12 months to 31-Mar-2013. Flybe chairman and CEO Jim French added, "the removal of debit card fees as directed by the Office of Fair Trading has proved a further challenge to us this year". [more - original PR]