Budget airline Flybe posts full year loss

Budget airline Flybe reported a pre-tax loss this morning, following the first financial full-year of a three-year cost cutting plan.The Exeter-based airline reported a pre-tax loss of £35.6 million, down from last year's profit of £8.1m.The company said it has resolved legacy issues including exiting a loss-making joint venture with Finnair, and an agreement to buy 24 more Embraer E 175 aircraft. This has been done without any penalties.The airline also found solutions to divest seven surplus E195 aircraft, but has seven more to find solutions for.Total revenue reduced by 7.5% to £574.1m from £620.5m. The airline lifted Passenger Revenue per Seat 3.3% to £51.35.Analysts from Numis said the results were in line with pre-close guidance, although costs associated with the surplus E195 planes are estimated to be reduced from £26m to £20m next financial year."We believe that this is an encouraging start to the year and would not expect to see changes in consensus forecasts," the analysts said.Flybe shares were up 1.95% to 57.95p at 09.15 on Wednesday.