Flybe shares sink on sales slump

AppId is over the quota
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5 October 2011 Last updated at 16:02 GMT Shares in airline group Flybe fell 36% after it unveiled its second profits warning in five months.

Continue reading the main story The Exeter-based airline said it noted a "significant slowdown in sales" across its UK domestic network.

The fall in demand will mean a sales drop of 1% for the first half of its financial year, it added.

In May, it warned of the impact of the spending slowdown, as well as unveiling a ￡3 fuel surcharge for all flights which came into force last month.

Revenues at Flybe were 3% higher than last year when taking into account the impact of the 2010 volcanic ash disruption, which cost the company about ￡12m.

Underlying seat numbers flown fell 1.7%, while revenue per seat grew by 6%.

Shares fell 40% to 60p - a total fall of 80% on the shares' flotation price of 295p in December 2010.

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