Flybe up for sale following profits warning

Flybe has recently warned over profits following easing demand and a £29m hit from rising fuel costs and the weak pound

Flybe has recently warned over profits following easing demand and a £29m hit from rising fuel costs and the weak pound

It says the decision follows battles against challenging conditions in the aviation industry.

Flybe's share price soared 28 per cent this morning as the budget airline confirmed it is seeking a sale after revealing plunging profits.

The regional carrier added that it was "in discussions with a number of strategic operators about a potential sale of the company".

Flybe planes at Norwich Airport.

Earlier this year a potential sale of the airline to the Stobart Group fell through when a bid was rejected.

But Flybe said it was also looking at other options, such as further reductions in capacity and costs.

The group has hired Evercore as an adviser to help with the review and sales process.

It carries around eight million passengers a year.

Shares in Flybe, which have dropped more than 60 per cent over the past year, rose 11 per cent...

In October, the carrier issued its profit warning, which chief executive Christine Ourmières-Widener blamed a lack of growth in the short-haul market, higher fuel costs and a weaker pound.

In 2011, the company named one of its Q400 aircraft in memory of Adam Stansfield and, at the start of the last season, they launched a special Flybe-inspired kit during City's 2-0 win over Grimsby at St James Park.

Chief executive Christine Ourmières-Widener said continued improvements were being seen into the current third quarter - with a higher portion of seats sold than a year ago - that showed "the popularity of Flybe for our customers".

"Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs", she said at the time.

Flybe is now reviewing its business in terms of cash management, cost savings and capacity reduction.

Flybe said it was also exploring a possible move to a standard London Stock Exchange listing, from its current premium listing, saying that would give more flexibility on divestments.