Regional airline Flybe ‘in discussions’ over potential sale

British airline Flybe has gone up for sale on the back of a profit warning less than a month ago.

The carrier, headquartered in Exeter, announced in a statement this morning (November 14) that it is “in discussions with a number of strategic operators” over a potential sale.

In September, Flybe warned that a combination of falling consumer demand, the weaker pound and increased fuel costs would drive full-year losses to £22m. Shares in the company have since fallen nearly 75%.

Flybe is currently valued at around £25m – a drop of 88% on its £215m valuation when it started trading on the London Stock Exchange eight years ago.

According to Sky News, infrastructure and support services giant Stobart Group could be a potential buyer. The firm proposed to buy the airline earlier this year, but pulled out of the bid after Flybe rejected its offer.

Dating back to 1979 when it traded as Jersey European Airways (UK) Ltd, Flybe today serves around eight million passengers annually with a fleet of 78 planes. It operates from many smaller UK airports, including London City and Norwich.

The carrier is reported to have been struggling to recover from the impact of a costly IT overhaul.

Its chief executive, Christine Ourmieres-Widener, last month said the firm was reviewing a number of “capacity and cost-saving measures”, adding: “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”.

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