UK budget carrier FlyBe says for sale

Struggling British no-frills airline FlyBe yesterday put itself up for sale, adding it was in talks with potential buyers in the face of a challenging market. “The board of Flybe Group Plc announces today that it is undertaking a comprehensive review of the various strategic options open to it to address the current challenges facing the airline industry and maximise value for shareholders,” it said in a statement.

“These options include further capacity and cost saving measures, initiatives to strengthen the balance sheet and preserve cash resources, as well as a potential sale of the company through the commencement of a formal sale process.” The regional carrier added that it was “in discussions with a number of strategic operators about a potential sale of the company”.

The news comes weeks after Flybe had issued a profits warning on weak demand and alongside a £29-million hit from rising fuel costs and the weak pound. The group’s share price has slumped by three quarters in value since September amid intense investor doubts over its future.