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]
Flybe downgrades revenue full-year target amid, positive EBITDA result forecast
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Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.