A lot of companies felt the pressure that was put on them last year by the Icelandic volcano. Although the eruption has been over for some time now, companies are still coming forward to announce just how much money the eruption cost them. This time it is Flybe, who finds itself in the red just before the UK regional airline chooses to expand into Continental Europe.
According to recent reports, Flybe saw a pretax loss of some £4.3 million in its first full year results since the company was able to raise £60 million through its flotation just last December. However, it appears that investors are not worried about this loss. In fact, shares for Flybe have actually increased 6 percent, or the same as 10p, to 178p.
The chief executive of Flybe, Jim French, said that the company has estimated that the net negative impact on profits due to the volcano has amounted to £11.6 million. This actually represents 2 percent of the company’s complete revenue. Overall, there are a lot of companies out there that are talking to Flybe about helping to improve their regional business within Continental Europe.
Jim did finish up by saying that he wants to be in a position to announce something, but there will be conformation of something later on in the future, hopefully. The company is always determined that anything that they can do in Europe has to be right for the business strategically. The overall goal of Flybe is to become the regional airline of Europe. This is a goal that will be hard to reach, but Flybe has all the confidence in the world that it will work out.