Flyglobespan £19m loss; announce fuel surchages
31.05.08
Flyglobespan, the Edinburgh based budget airline, said it would introduce surcharges on long-haul flights as it revealed its finances had plunged into the red after a turbulent summer and the rocketing price of oil. Jet fuel costs have soared around 82% in the last year.
The airline yesterday unveiled a £19.3 million pre-tax loss for the year to the end of October, compared with a pre-tax profit of £5 million the year before. Flyglobespan, which flies from nine UK airports, said last year's profits plunge was mainly caused by on a summer of discontent that had been plagued by technical difficulties and delays on transatlantic routes.
Turnover increased to £279 million in the year to October 31 from £208 million previously. However, the loses leave the airline with a £13 million hole in its balance sheet.
Chief executive Rick Green insisted the same circumstances would not arise again, adding that the group was well on track for a return to profit in 2008. He told The Herald newspaer that while the company was ‘about three-quarters hedged’ against further oil price rises, it was planning to introduce surcharges of £20 to £25 per passenger on flights this year. He said: ‘They will be minimal and just on long-haul flights.'
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