Flybe Group plc: Pre-close trading update

The Group performed in line with management expectations through the final quarter of the year ended 31 March 2012.

Flybe UK continues to focus on a number of initiatives to increase revenue per seat, further reduce costs and ensure capacity is optimally matched to demand. To that end, we announced a contract flying agreement with Brussels Airlines on 8 March 2012 to provide two Bombardier Q400 aircraft. More details on revenue and cost initiatives will be provided with the full year results in June 2012. Flybe UK has maintained its leadership position in the UK regional and domestic markets.

Flybe Finland, our joint venture with Finnair, continues the expansion of its scheduled services, including routes into Sweden and Denmark, as part of our plan to develop the business into the leading Regional carrier in Northern Europe.

In our Aviation Support division, the MRO business has seen increased demand for third party aircraft maintenance from European regional airlines and the Training Academy will benefit from the recently commissioned second flight simulator.

Although market conditions remain challenging, we have a robust and flexible business model combined with clear and achievable growth plans. We remain confident about Flybe's long term future.