Flybe is to axe 300 jobs in an effort to make cost savings of £35 million in 2014-15.
Around 10% of UK-based staff will be made redundant in the restructuring. The regional carrier said its did not expect any “significant change” to the number of UK bases or its route network at this stage.
“The cost reduction plan should deliver £35 million of savings by 2014/15, and is expected to result in a new slimline business model,” the carrier said today. Costs of restructuring are estimated at between £10 million and £12 million.
News of the job cuts came as the group released third quarter 2012 figures showing total revenue up by 17.2% to £193.3 million, with the growth being driven predominantly by Flybe Finland, Flybe’s joint venture with Finnair.
Group revenue increased by 2.5% to £143.2 million thanks to an increase in contract flying. UK passenger numbers were up 3% to 1.7 million on the same three months the previous year.
Flybe UK’s costs per operated seat for the quarter to December 31, excluding fuel, increased by 0.8%.
The company said: “The business continues to experience a late booking profile from its passengers, reflecting the high propensity of business travellers. Flybe UK’s forward passenger sales revenue for Q4 2012/13 currently shows an increase over last year of circa 2%, driven by a small increase in passenger volumes.
“Flybe UK’s forward passenger sales revenue for summer 2013 currently shows a year on year increase of circa 5%, driven by yield improvements.”