Flybe shares slump 25% on profit warning
Flybe issued a profit warning for the year ending 31-Mar-2011 and the current financial year, citing high oil prices and weak leisure traffic thanks to the slow recovery of the UK economy. The company expects to report net profit of GBP22 million for the year to Mar-2011, well below expectations. It also slashed its FY2011/12 profit expectations from a profit of GBP36 million to GBP20 million.
The carrier’s shares plummeted 25% yesterday, to 172.5 pence, in reaction to the news. The carrier’s shares have declined 49.5% since it listed in Dec-2010, when it raised GBP215 million.
Selected European share price movements (% change): 05-May-2011