Airline Flybe puts itself up for sale in wake of profit warning
Under-pressure regional airline Flybe – the largest carrier to operate out of Birmingham Airport – has said it is in talks with a number of "strategic operators" about a possible sale of the group.
Flybe said the decision to put itself up for sale comes amid a range of options being considered as it battles against challenging conditions in the airline industry.
The airline is the biggest single operator out of Birmingham Airport, employing around 400 people at the airport where it currently runs around 750 flights a week on 29 routes.
The group has hired Evercore as adviser to help with the review and sales process.
It comes just weeks after Flybe warned over profits following easing demand and a £29 million hit from rising fuel costs and the weak pound.
Flybe also announced underlying pre-tax profits of £9.9 million, up from £9.2 million a year earlier, while group revenues fell 2.4% to £409.2 million.
Chief executive Christine Ourmieres-Widener said the group continued to see improvements in the third quarter and said cost savings had already helped to drive progress in boosting profits.
But she added: "There has been a recent softening in growth in the short-haul market, as well as continued headwinds from higher fuel and currency costs.
"We are responding to this by reviewing every aspect of our business, especially further capacity reduction, cash management and cost savings."
Shares in Flybe jumped as much as 44% on opening, before paring back to stand 11% higher.
News of the deal also sparked share rises across the sector, with easyJet 2% higher in the FTSE 100 Index, Ryanair 1% higher, Wizz Air up 3% and potential Flybe suitor Stobart Group up 2%.
