Fuel economy gov

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he firm has overcome rising fuel costs to record a pre-tax profit of 35.4 million in the year to the end of March, 131 per cent ahead of last year.And it said that it has carried the momentum on to the first quarter of its new year, with profits ahead by 14 per cent in the three months to the end of June.The growth comes after the acquisitions of Scottish airline Loganair and BA Connect in the year.The firm, which operates a number of routes to and from Edinburgh, said it has taken action to cut fuel usage and had one of the most fuel-efficient fleets.Fuel costs are currently 24 per cent of total costs one of the lowest rations in the aviation industry.Jim French, chairman of Flybe, said: 'Flybe became one of Europe's largest regional airlines in 2007-8 in what was a transformational year for the business as we successfully integrated and realised the benefits of the acquisition of BA Connect.'This year, with passenger volumes of over seven million being flown on 520 flights a day across a route network of over 190 destinations being sold under the Flybe brand, serving the major business and leisure destinations of Europe, Flybe can count itself as one of the major players in the airline industry.'With current fuel costs at 24 per cent of total costs, Flybe's fuel costs represent one of the lowest percentage burdens in the industry. With one of the most fuel-efficient fleets and a passenger base that is less dependant upon discretionary leisure spend, Flybe is continuing to perform strongly in the current difficult environment.'The firm said that its business model, as a regional airline, is 'unique and quite distinct' from low-cost airlines.Its rise in profits comes as many airlines, including British Airways and Ryanair, toil from rising costs and the economic downturn.In January, it announced that Loganair would become its first franchise partner.Once operations commence in October, the franchise will mean that, in Scotland, Flybe will have 55 routes, carry three million passengers and become the second largest airline in Scotland.The company continued the strong performance in the first quarter of its new financial year, with pre-tax profits up 14 per cent at 12.2m and revenues up 13.7 per cent to 154.8m.Passenger numbers increased by 18 per cent to 2.07m.'The combination of our long-term strategy, focussed management actions and strong cash position gives us a major opportunity to maximise the opportunities that will surely come as the industry enters a period of consolidation,' said Mr French

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