Job losses as part of a turnaround plan at Flybe will total 450 rather than 500 the airline revealed as it reported a stabilisation of revenue in the final quarter of 2013.
Flybe reported group revenue in line with the same period 12 months earlier at £142.9 million.
The regional carrier’s UK operations saw a 0.4% increase in revenue to £137.6 million in the three months despite a 2.3% drop in capacity. Flybe’s UK operations saw a 2.3% increase in passenger revenue per seat to £48.46.
The airline originally planned 500 redundancies as part of cost cutting to save £7 million in 2013-14 and £26 million the following year.
But Flybe said in an interim management statement yesterday: “It is now anticipated job losses will total around 450, and work is continuing to reduce the cost of aircraft grounding.”
Flybe’s UK route network has been rationalised for the summer, impacting 55 of last year’s 140 routes, with the airline pulling off 30 unprofitable routes
The carrier’s network of UK bases will almost halve from 13 to seven by the end of March with a refocus towards larger hubs resulting in the closure of bases in Inverness, Aberdeen, Isle of Man, Newcastle, Jersey and Guernsey.
“Flybe will continue to operate services to and from all of these airports, as part of a total of 119 routes flown across its UK network in the 2014 summer season,” the airline said in a statement.
“In the short-term, Flybe’s revenue will be affected as it discontinues unprofitable routes. However, the group’s improved cost structure will, the board believes, provide Flybe with a firm foundation for future profitable growth.”
Major expansion at Birmingham with seven new routes, including Florence, Cologne and Porto will see the airport becoming Flybe’s biggest base with 12 aircraft flying 32 routes.
Birmingham airport announced Flybe will become its largest carrier, flying almost two million travellers to and from the airport.
Flybe chief executive Saad Hammad said: “We are on track to deliver £40 million of annual cost savings from phases one and two of the turnaround plan by 31 March 2014, and significant progress has been made already on the additional actions announced in November last year.
“Taking decisive action gives us a strong platform. We are well on our way to becoming Europe’s best local airline.”