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Stobart waits in wings

Struggling Flybe puts itself up for sale as costs rise

Flybe contributed

The airline is struggling with rising costs


 

Flybe has put itself up for sale as a result of the weak pound and higher fuel costs and said it is in discussions with a number of strategic operators.

The airline, which provides a number of short haul flights around the UK and Europe, warned last month that full-year losses would hit £22m. Its shares have fallen by almost 75% since September.

The Exeter-based company, which issues interim results today, is now valued at about £25m compared to £215m when it floated on the stock exchange in 2010. Bankers at Evercore have been brought in to handle the talks about a potential deal

It is thought Stobart Group – which pulled out of a bid for the airline earlier this year – could revive its interest. It has 78 planes operating from smaller airports and carrying eight million passengers a year on 210 routes.

However, it has been struggling to recover from a costly IT overhaul and has been trying to reduce costs.

Last month, Flybe’s chief executive Christine Ourmieres-Widener said it was reviewing “further capacity and cost-saving measures”.



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