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Flybe to the Moon and Let Me Play Among This Star.

By Malcolm Stacey | Saturday 11 June 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello share switchers. During 2016, I've already suggested that you research a few airlines, as the signs are that most of them will do rather well in the next year or so. We can mostly thank the low price of oil. But airports are getting busier all the time. As many less-developed parts of the world become, well, more developed, more of their residents will want to hit the business and tourism trails.

Countries which are moving further and faster into the 21st century are also attracting many more flying visitors to their shores.

Evidence of a revival in airlines comes with the latest numbers from Flybe (FLYB) which is a budget airline with a better reputation for customer service than some.

It has reported a pre-tax profit of £5.5million. Which is excellent news when you consider that the time before it recorded a stonking loss of £25.4 million. The latest profit bested City predictions by £2.5 million, too The company sold 8% more seats than last year and had a 17% increase in capacity. That's real growth, chums.

Flybe, based in Exeter, is a bigger airline than you might think, being the biggest indy regional airline in Europe. Though the number of countries is limited to around 15, only operating from about 100 destinations.

There are some analysts who disagree that airlines have a glittering near future. They point to terrorist threats, strikes in France and a growing number of seats caused by a surge in worldwide competition, particularly for shorter European journeys.

Flybe is aware of potential difficulties and says it is taking action to cut costs, which is what we always like to hear on Shareprophets. It beats pouring more money into the business every time.

Would Brexit make any difference to Flybe's prospects? I don't happen to think so.

Though some disagree with me in the Punter's Return. God bless.



 


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