Flybe ‘up for sale’ weeks after profit warning

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Flybe is reported to have put itself up for sale less than a month after issuing a dramatic profit warning.

The regional airline is expected to say on Wednesday that its board is exploring a sale or a merger with a rival, according to Sky News.

Last month, the airline warned full-year losses would reach £22m due to a combination of falling consumer demand, a weaker pound and higher fuel costs.

The airline’s shares have fallen by almost 75% since September.

The Exeter-based airline is now valued at around £25m, far below the £215m it was valued at when it floated on the stock exchange in 2010.

Stobart Group – which pulled out of a bid to buy Flybe earlier this year after the airline rejected its offer – could be a possible purchaser, according to Sky.

Flybe, whose roots date back to 1979, has 78 planes operating from smaller airports such as London City, Southampton and Norwich to destinations in the UK and Europe.

It serves around eight million passengers a year, but 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”.

“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.

The airline is due to issue its interim results on Wednesday. The company declined to comment on the sale reports.