Flybe to cut costs after higher maintenance hits profit

Flybe said Thursday it would continue to work to keep costs down following a profit warning last month, as the increased expense of aircraft maintenance weighed on its bottom line. Profit came in towards the upper end of the new forecast range provided in October, sending the carrier's shares up nearly 5% in early deals. But the rally was short-lived and the stock remains down over 15% since mid-October, when the airline first said that higher aircraft maintenance costs would mean first-half profit would be lower than expected. October's profit warning was another shock to a sector which has faced turmoil this year, with Air Berlin, Alitalia and Monarch all going into administration. Flybe's adjusted profit before tax fell to GBP8.4m in the first half, towards the upper of the GBP5m-10m range given in that warning. <br/>