www.flybe.com

Read the article again. There are give aways.

Initial reports from Flybe indicted a fire had occurred in the left engine and had been extinguished by the pilot using an automatic safety system.

But last night an aviation expert questioned the seriousness of the problem that has been uncovered by the investigation.

“It costs a lot of money for this type of repair plus it costs airlines a lot to have a plane grounded.

THEN.........

He said: “There is no doubt there was a fire in the engine but it concerns me that the repairs have been so delayed and it would suggest there was something more serious.

“Flybe would have been working with scant information when the incident happened and no doubt they understood that a fire had broken out in the engine. At that stage when they made their media statement it would have been impossible for them to know exactly what else might have gone wrong, if anything.

“Under normal circumstances a fire in an engine would be extinguished and the plane landed. The fire-damaged engine would be have been removed and inspected and a new one fitted within a matter of days.

as i'm already short here, i shall be very happy to see sp tumble south, but i do not subscribe to fuelling this sort of unproven rumour .... as it stands, it is supposition and little more

Im the messenger.

Seems strange though that in normal circumstances a new engine would be fitted inspected in a few days.

Couldnt give a toss either way anyway, got far too much on now over the next 9 months.

sorry m8 ... that was unusually grumpy of me last night

Another profit warning.

This is significant.........

Fuel markets are experiencing significant reductions in fuel prices with the dollar strengthening against sterling. Given our hedging profile on both fuel and USD, this will have no beneficial effect on our FY15 and minimal impact on FY16 results.

:-)
shame i wasn't brave enough to take a somewhat larger position, but still not to be knocked

Yep wish Id have had another short now but just dont have the time for next 9 months or so to keep a beady eye on the markets.

Another big minus..........

We expect to achieve around break-even at pre-tax profit level for the Full Year to March 2015, before the costs of the E195s and any impact of USD loan revaluation,

strewth!
$ loans are going to cost them dear as it's strengthened 7-10% over the last year

This is why i ignore most broker rec's ..

=======================

26 Jan Liberum Capital 140.00 Buy
13 Jan Liberum Capital 180.00 Buy
13 Jan Liberum Capital 180.00 Buy
22 Dec Liberum Capital 180.00 Buy
3 Dec Liberum Capital 180.00 Buy
1 Dec Liberum Capital 180.00 Buy

Looks a dogs dinner when you go back through the figures.

That new CEO doesnt help being so optimistic.

In fact cant see it making a profit until 2017 now. Thats if its still in business, just think about that hedging of fuel and how its going to effect competition. Rivals will be able to knock out prices far lower than Flyb. And then theres the loan revaluation costs.

Margins will be eroded paper thin.

I honest really do fear for this company.

SP going from bad to worse.

i suppose next support is 60, but if the bears really get their teeth into this, there's no real reason for it to stop there

Could fall as low as 40p and not stop there either.

I seriously think this one could go bust. imho.

Could fall as low as 40p and not stop there either.

I seriously think this one could go bust. imho.

Flybe loses a quarter of its value after disappointing update
Airline says it will only break even for year and oil price fall will not benefit business
Guardian 26/Jan/2015


Flybe grounded after saying it will only break even this year

The airline world may be concentrating on International Airline Group’s attempt to buy Aer Lingus, but there is also time to note a disappointing update from Flybe.

The budget airline’s shares have lost nearly a quarter of their value - down 21.75p at 68.25p - after it said it would only break even in the full year after a fall in third quarter passenger revenue. After moving into profit last year, the airline had already moved back into the red in the first half due to one off costs and a charge relating to ending its Finnish joint venture.

Now it says passenger revenues dropped 3.8% to £126.8m in the three months to December, after increased competition on its routes from London City Airport. It said:

We believe that this competitive pressure will extend the period of time that these routes take to reach maturity and deliver the full contribution we expect.

It also said the recent plunge in the oil price would have no beneficial on its 2015 figures and minimal impact on 2016 “given our hedging profile on both fuel and the US dollar.” But it said continued lower oil prices could give it flexibility to cut fares if it seemed commercially necessary.

It said it was still seeking to dispose of nine unwanted Embraer E195 aircraft (known as project Blackbird) which cost around £26m a year. It plans to use five of them on selected routes this summer but is still looking for a permanent solution for these aircraft.

Despite the problems chief executive Saad Hammad said:

Flybe’s improvement in its core Uk business continues to progress. Only a year into our three year transformation we now have a platform which enables us to compete in a tough environment where the consumer demands value. We are now well positioned to continue our positive momentum towards delivering sustained profitability and value to shareholders.

Looks like 60p on the cards over the next few days.