Flybe has blamed a downturn in the number of business passengers as it issued another profits warning.
The regional airline saw passenger numbers fall by 3 per cent to 1.9 million for its UK division between April and June. Load factor also fell by 0.7 per cent to 62.4 per cent compared to the same quarter in 2011.
CEO Jim French said: ?2012/13 is proving to be another very challenging year in the European regional aviation sector with continued weak consumer markets and stubbornly high oil prices.
?After four years of consecutive decline, the UK domestic air market had shown signs of stabilising this year although June slipped back into 3 per cent year-on-year decline.
?Whilst the UK to European leisure routes performed well in quarter one, the UK to European business market has shown signs of weakness in recent months, leading to today's revised trading outlook.?
Flybe said that the eurozone crisis and struggling UK economy, combined with the ?distortions? caused by the Olympics and Queen?s diamond jubilee, meant that it was now forecasting revenue growth of between 0 and 2 per cent ? lower than previously expected.
"We remain cautious over the outlook and do not expect a material recovery in either consumer or business confidence in the short term,? added French. ?We therefore remain focused on executing our comprehensive action plan to both grow the business whilst mitigating cost pressures.?
The latest profits warning did not go down well with investors as Flybe?s share price fell by around 15 per cent to 64p in early trading on the London Stock Exchange.
flybe.com
Source: http://www.abtn.co.uk/news/1017702-business-travel-slump-hits-flybe
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