Flybe to axe 500 more jobs

The Devon airline Flybe has announced plans to cut 500 jobs, despite reporting a return to profit.

The Exeter-based company is planning to make £40m of savings this year and £45m in 2014-15.

Flybe chief executive Saad Hammad said: "The business needed action now and so today we are explaining our next phase which encompasses a review of everything we do and how we do it.

"Unfortunately there is a proposal for further redundancies. We will consult with the trade unions and employees to ensure that this is done fairly and delivers the right outcome for the business."

Mr Hammad, who joined the company in August, said the economic outlook "remains challenging".

Group revenues rose to £351.1m in the six months, up from £340.8m in the same period last year.

Flybe reduced its workforce by 490 in 2012-13, with a further 100 leaving in the first half of 2013-14.

Pre-tax profits were £13.8m for the six months to 30 September, compared with a loss of £1.6m a year earlier.

* Picture courtesy of Flybe