Flybe has said a turnaround plan involving nearly 100 redundancies in Exeter is "progressing well".
A cost-cutting programme unveiled in January entails cutting 300 jobs – 10 per cent of the airline's UK workforce, including 20 per cent of its management – as the company targets a return to profitability.
In a trading update this morning, Flybe told investors it is on course to make an underlying loss before tax for 2012/13 which will be at the lower end of previous guidance. Analysts have been forecasting a loss of around £15m.
The Exeter-based airline aims to break even in 2013/14 before returning to profit in 2014/15.
Since the announcement of its turnaround plan in January, Flybe said it has been "taking significant actions to restore profitability", adding: "Phase 1 of the cost reduction plan is progressing well and is expected to deliver cost savings ahead of the £25m already communicated for the year to March 2014.
"The Flybe Group has been restructured to create a leaner, more focused business, with the number of divisions reduced to two, Flybe UK and Flybe Outsourcing Solutions."
Restructuring costs for Phase 1 of the programme are expected to be between £10m and £12m.
Phase 2 will see Flybe targeting further revenue and cost benefits from 2013/14 onwards.
The airline added that group revenue for 2012/13 will be in line with the previous year, while underlying costs, including fuel, are expected to increase by around 2.5 per cent.
Revenue under management, including Flybe Finland, Flybe's joint venture with Finnair, will show year-on-year growth of around 15 per cent due to an increase in contract flying operations.
Flybe UK's forward ticket sales revenue for the 2013 summer flying programme is currently two per cent up on the same time last year.
A detailed update on the turnaround programme and the group's strategic plan will be announced next month. Flybe is due to post its results for the year to the end of March 2013 in June.
