Good morning!

A slight misunderstanding has arisen over what is, and what isn't acceptable in the comments section after these reports. It's really just common sense, but for the avoidance of doubt, here is the memo.

Stockopedia is my sensible space. Other social media - arguably not so much. We don't mix the two.

As if my patience wasn't already wearing thin, Flybe has put out a trading update - that's usually a bird-strike for the share price.


Flybe (LON:FLYB)

Share price: 59.5p (down 7.1% today)
No. shares: 216.7m
Market cap: £128.9m

(at the time of writing, I hold a long position in this share)

Trading update - actually, it seems alright to me, with the key part being an in line update:

Results for the full year to March 2016 are anticipated to be in line with market expectations.

Various other details are given. The load factor of 68% seems low to me, down 2% on last year - possibly due to surplus planes being used for routes that probably wouldn't otherwise be operated. That's a lot of empty seats on an average flight - almost a third.

The terrorist attack in Paris gets a mention - although these days I don't think many people give any thought to terrorism - it's a risk when you get on a plane, same as many other risks that we face every day in life. If you're in the wrong place, at the wrong time, then that's that. It certainly won't stop me, or millions of other people from flying.

In fact, we're flying more than ever, due to lower fares:

Against the background of the highest level of market capacity growth for six years driven by low fuel prices, we continue to be disciplined in deploying our capacity, focusing investment on routes where airport partners provide cost mitigation and those which adhere strictly to our business model. We are also continuing to reduce unit cost, which provides margin resilience, as well as reviewing our capacity growth rate beyond this summer.

Note the strong balance sheet here, with cash (from customers paying up-front) considerably exceeding the market cap:

In March 2016, Flybe took ownership of three Q400 aircraft, previously on operating leases, for a cash consideration of USD34m. This is in line with Flybe's strategy of rebalancing its aircraft fleet away from reliance on operating leases and towards outright ownership which brings the…

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