4 April 2014 – trading update
Performance through the final quarter of the year ended 31 March 2014 was in line with expectations. The company’s competitive pricing strategy to offer more attractive lead-in fares appears to be paying off, with higher passenger volumes more than offsetting lower yields. This has led to a 4% increase in passenger revenue per seat to £49.80. There has also been a novel commitment to punctuality which promises passengers that if a flight arrives more than 60 minutes late at its destination due to a delay within Flybe’s control, they will qualify for a £60 voucher towards their next flight if they book it within 60 days. This should help build brand loyalty. Although the shares have performed well, they should have further to run and we maintain our BUY rating for now.