Flybe says working on cutting fleet-grounding costs

Mon Feb 3, 2014 3:01am EST

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Feb 3 (Reuters) - British carrier Flybe Group Plc, which is in the midst of a restructuring, said it was working to cut the costs of grounding some of its fleet and now expects fewer job losses than previously announced.

Flybe has weathered nine months that marked severe job cuts, a new CEO, the resignation of four board members, and the airline's biggest shareholder dumping its entire stake.

The airline had proposed 500 redundancies and estimated one-time charges of 14 million pounds ($23.01 million) in the current year plus a further 27 million pounds in 2014-15 for grounding aircraft, under its 'Immediate Actions' plan announced in November.

The company said it now expects total job losses to be around 450.

"We are encouraged by the clear momentum in the turnaround," Liberum analyst Gerald Khoo wrote in a note to clients.

The airline, which in July appointed ex-easyJet executive Saad Hammad as its new chief, reported revenue of 142.9 million pounds for the quarter ended Dec. 31.

Passenger revenue per seat from its UK Airline business rose

2.3 percent to 48.46 pounds during the quarter.

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