Flybe, Europe’s largest regional airline, has collapsed into administration with the loss of more than 2,000 jobs, less than two months after the government announced a rescue deal. The impact of the coronavirus on flight bookings proved the last straw for the Exeter-based airline, which operates almost 40% of UK domestic flights, as the government stalled on a controversial £100m loan. Before the viral outbreak, Flybe was already struggling with rising fuel costs – a key factor in any airline’s ability to make a profit – soft demand and competition. The airline employed more than 2,000 people directly and about 8 million people a year used its services. Flybe has long struggled to balance the books, despite cost-cutting plans and redundancies, and was reporting losses of about £20m a year before the Connect takeover.
Flybe Collapse
