Flybe is expected to announce spiralling losses on Tuesday as the troubled carrier counts the cost of a dire winter.
The company warned in April it had been hit by “extremely poor weather” in February and March. Cancellations tripled in its final quarter leading to £4m being wiped off its bottom line.
The City is forecasting annual pre-tax losses of £15.7m, up from £6.7m of losses last year. Revenue for the year to March 2018 is expected to rise by 7pc to £756m.
Investors have been treated to a rollercoaster ride in 2018. Shares spiked almost a third in February on an announcement that Stobart Group, a FTSE 250 infrastructure and aviation conglomerate, was interested in buying the airline.
Although the deal fell through in March, prompting an equally dramatic share sell-off, it has been alleged that Stobart’s former chief executive meddled in the takeover bid for his own gain – something that has been strenuously denied.
Achal Kumar, an HSBC analyst, said the failed tie-up between Stobart and Flybe was the regional airline industry’s “most obvious consolidation”.
Despite growing losses, the Exeter-based carrier has made some headway in cutting unprofitable routes and handing back aircraft to lessors.
Flybe previously identified six leased aircraft to be handed back, five of which were returned by March.
Passenger numbers rose 3.7pc despite a reduction in capacity by 6pc. Revenue per seat improved by 9pc.
Liberum analyst Gerald Khoo called this trend “encouraging”.