Shares in airline Flybe (LON:FLYB) jumped over 7 percent at market open on Thursday, despite reporting a 6.7 million loss for the 2016 financial year.
The loss had been forecast back in March, when the airline issued guidance for a “small underlying loss before tax for the year of around £5 – 10 million”. On Thursday the company announced an adjusted loss before tax of £6.7 million, after IT write-downs of £4.8m.
However, the company saw a 13.4 percent increase in group revenue to £707.4 million, up from £ 623.8m in the previous financial year, with passenger yield remaining stable at £70.20.
Flybe was named by OAG as the best UK airline for punctuality during 2016 and placed sixth worldwide, and the company signed for a new franchise and joint venture alliance with Eastern Airways and a new franchise agreement with Blue Islands in the Channel Islands.
The airline said it had achieved “many significant changes” during the year, with Flybe seeing “significant capacity growth in a market where we witnessed slower growth in consumer demand.”
Looking forward the airline remained positive, saying it was “well placed as it enters 2017/18 as it will be in control of its capacity going forward.”
Despite the loss for the year, Flybe shares are currently trading up 4.97 percent at 34.64 (0828GMT).