Struggling regional airline Flybe on Wednesday put itself up for sale after being burdened with higher fuel costs and currency headwinds.
The carrier revealed its strategic review as it posted a 54% slump in first-half pre-tax profits to £7.4 million. It also warned that it is grappling with softer demand in the short-haul flights market.
Flybe said it is “in discussions with a number of strategic operators about a potential sale of the company”.
Chief executive Christine Ourmières-Widener declined to say whether the suitors were rivals, or whether Southend airport-owner Stobart may revisit talks. It abandoned plans for a takeover deal earlier this year.
Flybe’s slots at Heathrow, Southend and Gatwick could appeal to other airlines. It has 78 planes.
The shares rose 0.31p to 12.1p, valuing Flybe at £25 million. It was £215 million when it floated on the London Stock Exchange in 2010.
Ourmières-Widener added that another part of the review, which financial adviser Evercore is acting on, could alternatively see the airline speed up its cost savings plan.
The firm said: “Given the challenges brought by rising fuel prices and weaker sterling, management is actively encouraging every employee to focus on innovative ways to reduce costs and challenge existing procedures.”
Measures being looked at include reviewing supplier contracts and better fuel planning.
Today’s update comes around a month after the firm warned it expects a full-year pre-tax loss of £22 million, far higher than the City had forecast.
In the six months to September 30 revenues decreased 2.4% to £419.2 million, partly hurt by a reduction in its fleet size.
The company added that Brexit remains a major uncertainty for the sector and the wider economy.
Ourmières-Widener told the Standard: “Like rivals we are in challenging times... you have to look at all options.”
However, she remains “confident in the vital role that Flybe plays in UK connectivity”.
