Flyglobespan make £19m loss; plan fuel surcharge
31.05.08
Flyglobespan, the Edinburgh based budget airline, said it will 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 percent in the last year.
The airline announced a £19.3m pre-tax loss for the year to the end of October, compared with a pre-tax profit of £5m the year before. Flyglobespan, which flies from 9 UK airports, said last year's profits plunge was mainly caused by on a summer of discontent that had been plagued by technical difficulties - particularly with planes it hired - and delays on transatlantic routes.
Turnover increased to £279m in the year to October 31 from £208m previously. However, the loses leave the airline with a £13m hole in its balance sheet.
Chief executive Rick Green insisted the same problems would not arise again, adding that the group was 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 prices, 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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