Major regional airline Flybe, which is ending its services from Dundee, announced a “solid” third quarter’s performance in tough trading conditions.
The airline has axed its Dundee-Amsterdam service and is not renewing its franchise arrangement with Loganair for flights to London Stansted, although Loganair is bidding to take over that service on its own.
Flybe reported a 13.5% rise in passenger revenue for the three months to December 31 at £146.3 million by deploying previously committed capacity.
The added capacity and tough trading conditions resulted in the load factor – the number of sold seats – being down 1.7 percentage points to 67.2%. The pace of decline slowed against 4.3 percentage points in the first half.
Passenger numbers were up 9.9% at 2.1 million and total UK revenue, including from contract flying and other sources, was up 18.1% at £160.8m.
Passenger yield – revenue after deducting government taxes and levies – was up 2.8% at £69.53m.
Flybe said that as the anniversary passed of the Paris terrorist attacks and with the benefit of management actions, seat capacity growth started to slow but passenger yield increased and the decline in revenue per seat slowed.
Four additional Q400 aircraft were added to  the fleet during the quarter and the final four will be delivered in the last quarter, completing a transaction with Nordic Aviation Capital.
Flybe said UK connectivity will be increased with new routes between Edinburgh, Aberdeen and London Heathrow starting in March.
They will allow connections with codeshare partners including Etihad, Singapore Airlines and Virgin Atlantic as well as interline connections with United Airlines, Delta, Quantas, TAP and Cathay Pacific with more connectivity to be added over the coming months.
Christine Ourmieres-Widener, the recently appointed chief executive, said: “Everything I have seen so far confirms my excitement at the opportunity we have to become the best regional airline in Europe.
“There is much to be done, but we have the firm foundations needed to develop the business.
“My first priority is to look to rebuild passenger unit revenue and to challenge all our costs. This will be assisted by Flybe becoming an even more customer-focused business as we achieve greater control over our fleet size.”
Flybe formally ended its Dundee-Amsterdam service this month although it had operated it from Edinburgh for several weeks.
It bussed passengers up and down the M90 because of “issues with radar coverage” at Dundee.
Dundee Airport owners HIAL is trying to find another airline to take over the route, which receives a government subsidy.
Flybe is ending its arrangement with Loganair on the Dundee-Stansted route in August because of a failure to agree future operational standards and commercial arrangements.
Loganair is trying to continue flying the route depending on the extension of 
Public Service Obligation (PSO) subsidy for the service.
