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Flybe takes hit after profits warning

Shares in Flybe have taken a further hit after the airline issued a second profits warning in the space of five months.

The airline blamed a slowdown in demand on domestic routes as it said that first-half revenues would miss targets by 1%.

The statement caused a sharp decline in Flybe’s share price, which fell by 36% to 65p on Wednesday and stood at 66p at 8.30am on Thursday morning.

Shares were listed at 295p when the airline floated in December, 2010.

In a statement, the Exeter-based airline said it was too early to tell whether a “significant” slowdown in domestic sales in September was a short-term reaction to the current economic climate, or “a longer-term market adjustment”.

The Daily Telegraph reported on Flybe chairman and chief executive Jim French’s “frustration” over what he saw as an over-reaction from the markets.

“I’m frustrated for my staff and management who are delivering a great business but see the shares given a kicking by people who don’t appreciate the complexities of this business,” he said.

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