Multiple pressures on the travel sector and Flybe’s operations contributed to the regional carrier’s failure on Thursday (5 March), the airline’s joint administrators have said.
Alan Hudson, Joanne Robinson, Simon Edel and Lucy Winterborne of EY were appointed joint administrators of Flybe on Thursday after the company ceased trading during the early hours of the morning.
Flybe chief executive Mark Anderson said the coronavirus had “compounded” the carrier’s “significant funding challenges” by driving down demand for its services in the UK and Europe.
Hudson said: “Despite an agreement with the government to provide assistance to the company, added pressures on the travel industry in the past few weeks have further deepened the severity of its financial situation. Flybe had already been impacted by rising fuel costs, currency volatility and market uncertainty.
“As well as carrying out our duty as administrators, we are also supporting Flybe’s employees and customers at this incredibly difficult time.”
EY confirmed all Flybe flights have been cancelled and the “majority” of its workforce have been made redundant.
“Financial support for the company has been withdrawn and Flybe will not be able to reschedule flights,” the administrators added.