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Monday, March 27, 2023

Uncertainty surrounding Flybe highlights wider industry issues, says GlobalData

Following today’s news (Monday 13 January) that Flybe is reportedly holding crisis talks with the British government;

Ben Cordwell, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers his view on the airline’s current issues:

“News that Flybe is rumoured to be in rescue talks to secure additional funding comes as no real surprise as a number of British airlines have struggled to operate in an increasingly difficult environment in recent years.

“British airlines have been hit hard by the combination of a post-Brexit referendum slump and larger airlines like easyJet dominating slots at several key regional airports.

“GlobalData figures show that the number of airline seats sold in the UK increased by almost 70 million between 2014 and 2019. However, Flybe has found it difficult to compete, accounting for only 3.4% of the total seats sold in 2018.

“With GlobalData forecasting the total revenue of the British aviation industry to grow by over $13 billion between 2019 and 2022, it will be interesting to see if smaller airlines will continue to struggle or be able to take advantage of the growing market. However, it is difficult to see how they will turn it around and win market share from the likes of Ryanair and easyJet.”

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