The airline announced yesterday that it was in talks about a possible sale of the group, weeks after issuing a profits warning.
The Exeter-based carrier, which operates about 16 routes between Jersey and the UK and Switzerland, said it is also considering reducing its costs in measures which could include cutting flights.
However, this would not impact upon customers who have already made bookings, the flight operator said.
The airline, which has a franchise deal with Blue Islands, is now in talks with a number of ‘strategic operators’ about a potential sale or merger.
Christine Ormières-Widener, chief executive of Flybe, blamed a number of factors for the downturn. ‘There has been a recent softening in growth in the short-haul market, as well as continued headwinds from higher fuel and currency costs,’ she said. ‘We are responding to this by reviewing every aspect of our business. We remain confident in the vital role that Flybe plays in UK connectivity.’
Yesterday’s announcement comes weeks after Flybe said profits had dropped following falling demand and a £29 million hit from rising fuel costs and the weak pound.
In March, the Stobart Group – which operates flights between Jersey and Dublin on behalf of Aer Lingus – dropped plans to take over Flybe after failing to agree on terms.
Financial analysts have now hinted that Stobart may renew its efforts to buy the airline but Flybe has refused to comment on the matter.
The company’s market value has fallen by nearly 75 per cent since December. In half-year results, also announced yesterday, Flybe saw cost-cutting help lift underlying pre-tax profits to £9.9 million from £9.2 million a year earlier.
Doug Bannister, chief executive of Ports of Jersey, said he expected any sale or merger to result in a ‘continuity’ of Flybe’s operations.
‘Delivering Ports of Jersey’s route and carrier strategy means that unlike some regional airports, which rely solely on one carrier, Jersey has much greater resilience with multiple airlines serving the Island.
‘Flybe is an important carrier for Jersey, as it has been for many years, and we enjoy an excellent working relationship,’ said Mr Bannister, who added that the airline carried about 348,000 passengers on its Jersey routes last year.
‘Ports of Jersey has been advised by Flybe that it is considering various strategic options, and when it is able to inform us of its chosen direction, it will do so. We would expect any sale or merger process to be orderly and, performed well, that should provide for continuity of its operations.
‘Ports of Jersey, together with Visit Jersey, will continue to work with Flybe to support its operations in the Island as we would do in the future should there be a new ownership structure for the airline,’ he added.
A Blue Islands spokesperson said: ‘Blue Islands is a wholly independent, locally owned airline that currently operates as a Flybe franchise partner utilising the Flybe brand and sales channels and remains fully committed to serving the Channel Islands. While we do not envisage a change to current arrangements, Blue Islands could market its scheduled services independently should it be necessary to do so.
‘We continue to enjoy a good relationship with Flybe and will watch with interest the way in which this potential sale evolves.’
