British budget airline operator Flybe Group expects its profit to grow next year as the company cuts costs to cope with slow demand and fierce competition, chief executive Saad Hammad said.
Like other carriers, Flybe has been hit by oversupply in the industry as well as weak demand for travel to Europe in the aftermath of recent attacks in Paris and Brussels.
After several years of losses, the company embarked on a turnaround plan in 2013, buying aircraft instead of leasing them, slashing jobs and exiting unprofitable routes.
"We believe we can fly through this turbulence and come out the other side with enhanced profit delivery in the next financial year," Hammad told Reuters in an interview today.
Flybe said it expected cost savings of £4m this year and £8m next year from buying aircraft instead of leasing.
Hammad said flights to Europe would comprise more than 40% of the company's capacity this year compared with about 30% last year.
Larger rivals IAG and Air France KLM have cut back on their growth plans due to low demand.
Flybe reported an adjusted pretax profit of £5.5m for the year ended March 31 - its first annual profit as a listed company - compared with a loss of £25.4m a year earlier.
The airline said its unit costs excluding fuel fell 2.2% in constant currency.
Flybe has routes from Dublin, Cork and Knock to various European cities.
