Flybe has parted company with chief executive Saad Hammad by “mutual agreement”.
Hammad joined the regional airline in August 2013, but the firm has struggled financially – booking an adjusted pre-tax loss of £25.4 million in 2015 before swinging back to a £5.5m pre-tax profit for the year to 31 March.
Flybe said that chairman Simon Laffin will assume the role of executive chairman with immediate effect until a new chief executive is appointed.
Laffin said: “The board would like to thank Saad for his energy and drive which has been a major contributor towards Flybe’s transformation over the last three years. Whilst the whole aviation industry faces a challenging market environment, Flybe remains well placed.
“Our strategy remains to focus on regional routes and to provide an excellent service to our customers.”
The company said that it was actively looking for Hammad’s replacement.
Hammad, who will continue to receive his annual salary of £433,500 and other benefits while he is on garden leave until October 2017, added: “Now is the right time for me to move on to a fresh challenge. I would like to thank all company employees for their hard work, passion and commitment and wish them all the best.”