Flybe was losing £5m a month before collapse

By Lisa James
30/01/2023
Home » Flybe was losing £5m a month before collapse

Regional carrier Flybe, which went bust at the weekend, had been losing £5 million a month, according to reports.

Flybe ceased trading on Saturday, affecting 2,500 passengers due to travel immediately who were left trying to find alternative flights.

In total, 75,000 customers have been affected and 277 of Flybe’s 321 staff have been made redundant.

The remaining 44 have been retained pending a sale, but experts say it is unlikely Flybe will be up and running again.

It had been reported that some carriers had expressed early interest in a deal, but are now longer considering getting involved.

Other airlines, including easyJet, British Airways, Wizz Air and Ryanair launched ‘rescue flights’ for a limited period. Train companies also offered free travel.

And rival carriers are reaching out with offers of employment to staff who have suddenly found themselves out of a job.  

The collapse came weeks after Flybe announced plans to extend its summer schedule and passengers expressed anger the airline continued to take bookings hours before going into administration early on Saturday.

The Times reports Flybe was racking up losses of £5 million a month before its collapse.

It added administrators Interpath Advisory said the company was hit by a delay in the delivery of 17 aircraft that would have helped build out its network and give it scale to compete. They were held up by delays in the global supply chain.

Joint administrator David Pike said: “There is going to be a window where we’re keeping enough of the business preserved so that we can keep our accreditations alive to pursue a sale.”

Flybe relaunched in April last year, two years after it first collapsed, with the loss of 2,000 jobs.

Tim Jeans, board director at Cornwall Airport Newquay, told the BBC’s Today programme: “The good news is that because Flybe were so small, virtually every one of their routes will be replaced certainly by this summer.

“It’s not nearly the impact it had when it went bust [for the first time] three years ago.”

See Travel Gossip’s earlier story from Saturday morning when Flybe announced it had ceased trading.

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