Jim French welcomes Flybe revenue rise

JIM French, the Scots-born boss of Flybe, yesterday reported "encouraging" increases in revenues at the regional airline despite higher fuel costs and the consumer downturn.

However, the more upbeat first-quarter trading statement did little to lift shares, which have struggled to recover from a sharp dive in May when the firm issued a profits warning and subsequently posted a 4.3 million annual loss.

Shares last night closed down 3.2 per cent at 153p even though passenger revenues rose 12.2 per cent to 150.6m in the period to 16 August, pushing total revenue up 8.3 per cent to 160.4m.

The stock has lost almost half its value since Flybe made its debut on the stock exchange in December, priced at 295p.

The airline flew two million passengers during the quarter, a 7.7 per cent improvement on 2010, excluding last year's ash cloud disruption.

French, who is both chairman and chief executive, also struck an optimistic note about current trading, with revenue from forward ticket sales up 6 per cent compared to the same period last year.

"Though at an early stage of the year and with uncertain macro-economic conditions facing us, based on current trading the board maintains its expectations for the full year, and is well placed to deliver on its growth plans in the coming years," French said.