UK budget airline Flybe has managed to post full-year profits amounting to £30.4 million, despite the high cost of jet fuel and a market characterized by lessened demand.

One year ago the carrier reported a loss of £16.2 million, which took into account the acquisition of BA Connect, operating at a loss at that time.

The acquisition of BA Connect transformed Flybe into one of the largest regional carriers operating in Europe and was largely responsible for boosting its sales this year by 46 per cent, to £535.9m, according to the company’s chief executive, Jim French.

Passenger volumes grew substantially, to seven million, as the carrier’s schedule expanded to 520 daily flights on a network serving 190 destinations across Europe.

French said: “With one of the most fuel-efficient fleets and a passenger base that is less dependant upon discretionary leisure spend, Flybe is continuing to perform strongly in the current difficult environment.”

The airline maintains that its fuel bill, which represents 24 per cent of its operating costs, is one of the lowest percentages achieved in the industry.

French added that “as the industry enters a period of consolidation,” Flybe is in a strong position.

Internationally, losses by airlines are expected to exceed the $5 billion mark this year, as many carriers struggle to stay in the air during a continuing period of economic instability.

www.flybe.com