22 Jul 2015 07:00
Flybe Group plc
('Flybe' or 'the Group')
22 July 2015
Q1 2015/16 TRADING STATEMENT
FLYBE CONTINUES TO GROW
Flybe reports a positive start to the year, with sustained passenger and revenue growth, as it continues the next chapter of its transformation.
The return to growth delivered in the previous quarter has continued
· 12.3% increase in seat3 capacity to 2.8m seats (Q1 2014/15: 2.5m seats).
· 9.8% growth in passenger2 numbers to 2.1 million (Q1 2014/15: 1.9m passengers).
· 11.6% growth in passenger revenue6 to £147.7m (Q1 2014/15: £132.3m).
Encouraging unit revenue development, given capacity growth
· 0.7% improvement in passenger yield5 to £70.33 (Q1 2014/15: £69.81).
· 1.7ppts decrease in load factor4 to 74.1% (Q1 2014/15: 75.8%).
· 1.6% decrease in revenue per seat to £52.12 (Q1 2014/15: £52.94).
Continued reduction in unit cost
· 3.4% reduction in UK costs per seat (excluding surplus aircraft costs) to £51.92.
· Long term solutions for seven surplus E195s being actively pursued. Maximum exposure is £80m over four years. Exit costs are being targeted significantly below this figure.
New routes delivering top line growth
· 30 new routes launched this Summer including nine at Cardiff and nine at Bournemouth.
· Winter frequency increases on key routes, to address better the needs of time-sensitive travellers.
· New codeshare signed with Emirates on 25 Flybe routes across the UK
Q2 2015/16 current trading (capacity and bookings as at 17th July)
· 16% increase in seat capacity vs. prior year.
· 11% increase in passenger revenue vs. prior year.
· 47% of seats sold vs. c50% in the prior year.
· 2.4% increase in yield vs. prior year.
· 4.1% decrease in revenue per seat vs. prior year.
Saad Hammad, Chief Executive Officer, said:
"As we enter the next phase of our transformation, Flybe has again delivered revenue and passenger growth in the quarter, demonstrating the strength of our core business. We carried significantly more customers than the same time last year and maintained our industry-leading punctuality levels.
We remain focused on tackling the surplus E195 aircraft, our final legacy issue, and are actively pursuing a range of solutions."
Enquiries: Flybe Philip de Klerk, Chief Financial Officer
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Tel: +44 (0)20 7379 5151
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Maitland Neil Bennett Andy Donald | Tel: +44 (0)20 7379 5151 |
Flybe UK KPIs
Quarter to30 June 2015 | Quarter to30 June 2014 | Change% | |
Seats and passengers | |||
Scheduled seats1 (million) | 2.8 | 2.5 | 12.3 |
Passengers (million) | 2.1 | 1.9 | 9.8 |
Load factor (%) | 74.1 | 75.8 | (1.7 ppts) |
Revenue | |||
Passenger revenue (£m) | 147.7 | 132.3 | 11.6 |
Contract flying revenue (£m) | 2.4 | 3.9 | (38.5) |
Revenue from other activities (£m) | 2.6 | 2.9 | (10.3) |
Total Flybe UK revenue (£m) | 152.7 | 139.1 | 9.8 |
Yield | |||
Passenger yield (£) | 70.33 | 69.81 | 0.7 |
Passenger revenue per seat (£) | 52.12 | 52.94 | (1.6) |
Hedging
Flybe UK's current hedge books7 @ 20 July 2015 are summarised below (all hedges are forward swaps).
Jet fuel
· Q2 2015/16 - 78% hedged at $931 per tonne
· H2 2015/16 - 81% hedged at $855 per tonne
· H1 2016/17 - 64% hedged at $676 per tonne
US Dollar
· Q2 2015/16 - 67% hedged at $1.66
· H2 2015/16 - 65% hedged at $1.57
· H1 2016/17 - 39% hedged at $1.53
Carbon
· Calendar year 2015 - 100% hedged at €5.42 per tonne
· Calendar year 2016 - 68% hedged at €6.79 per tonne
Flybe UK currently has a broadly neutral position in Euro income and expenditure.
END
Notes:
1. Scheduled seats are the number of seats flown on Flybe scheduled services.
2. Passengers are people with an issued ticket where the ticket has charged a fare and/or a passenger surcharge and tax (if applicable). This includes people who purchase a ticket and do not show up for the flight where, as is usually the case, the ticket is non-refundable.
3. Seats represent the number of scheduled seats flown.
4. Load factor is the number of passengers divided by seats flown.
5. Passenger yield represents passenger revenue per passenger.
6. Passenger revenue represents total ticket and ancillary revenue including hard block less refunds (Passenger revenue per seat represented total ticket and ancillary revenue per seat in 2014/15 Q1 IMS)
7. Based on anticipated fuel, USD and carbon requirements
Forward-looking statements:
Certain information included in these statements is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.
Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and Flybe Group plc ("the Group") plans and objectives for future operations, including, without limitation, discussions of the Group's Business Plan, expected future revenues, financing plans and expected expenditures. All forward-looking statements in this report are based upon information known to the Group on the date of this IMS. The Group undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
It is not reasonably possible to itemise all of the many factors and specific events that could cause the Group's forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of the business. Further information on the primary risks of the business and the risk management process of the Group is given in the Annual Report and Accounts 2013/14; these documents are available on http://www.flybe.com/corporate/investors.