* Says on track for 3 mln stg FY pretax profit
* For 6 mths to Sept. 30, 21 pct of capacity sold, down 3pct pts
* Strong dollar to cost 7 mln stg in 2016/17 financial year
* Shares down 8 pct, hit lowest in 11 months
LONDON, April 7 (Reuters) - Shares in Flybe slumpedto an 11-month low on Thursday after the British regionalairline reported a drop in the level of bookings for comingmonths and warned over the impact of the strength of the dollar.
Flybe, which is coming to the end of a turnaround planstarted in 2013, said it was on track for a pretax profit of 3million pounds ($4 million) for the 12 months ended March 312016, against a 25 million pound adjusted loss last year.
But shares in the company, which connects British regionalairports to London and other European cities, traded down 8percent at 58.8 pence by 1022 GMT, having fallen as low as53.75p, their lowest since May last year.
Cantor analyst Robin Byde blamed the lack of a more positiveoutlook. "I think they've done very well on restructuringcapacity and fleet but demand still just seems to be too weak onthe routes that they fly," he said.
"You've had a number of investors decide that trading is notgoing to get significantly better any time soon and it's time tosell," Byde added.
Flybe, which says that about half its customers aretravelling for business, said that for the six months endedSept. 30 2016, 21 percent of its capacity had already been sold,3 percentage points behind the previous year.
Like all airlines, Flybe pays for fuel in dollars. It saidthe strengthening dollar would cost it 7 million pounds in its2016/17 financial year, despite it hedging exposure to fuel andthe dollar at a higher level.
Flybe said its turnaround plan had made progress, and thelast six months showed its business model was working. Itmaintained forecasts despite a drop-off in demand for businesstravel in the wake of the Paris attacks last November, and anincrease in capacity in European flying.
"Despite a really difficult revenue environment ... we'rereally pleased that Flybe's able to demonstrate its resilience,"Chief Executive Saad Hammad said in an interview.
Over the last six months, Flybe has slowed planned capacityexpansion and accelerated a cost-cutting plan to, for example,renegotiate maintenance contracts, to help it maintainprofitability. ($1 = 0.7113 pounds) (Reporting by Sarah Young; Editing by David Holmes)
