Flybe PLC (LON:FLYB) saw its shares push 3% higher this morning as the budget airline unveiled an alliance with UK-based regional airline Eastern Airways, a month after agreeing an expansion of a similar franchise agreement with Stobart Air.
The latest deal includes a five-year franchise agreement in which Eastern will operate its scheduled route network under the Flybe brand, as well as a joint venture and risk sharing agreement, covering four Eastern aircraft, to fly existing Flybe branded routes from Aberdeen, Edinburgh, Glasgow and Manchester.
READ: Flybe shares dive as it warns full-year profit will be lower than expected
The four joint venture aircraft be operated under the Flybe franchise and “significantly improve connectivity for Scotland” for the airline’s passengers.
Flights will start operating under the new arrangements from September, but tickets will go on sale immediately.
Eastern, whose head office is at Humberside Airport, operates scheduled domestic and short-haul international services and private charter services, with hubs at Aberdeen, Norwich, Teesside, Newcastle, Southampton, Leeds, Cardiff and Paris.
Excellent opportunity to strengthen the Flybe network, says boss
Flybe's chief executive officer Christine Ourmieres-Widener said: "This alliance with Eastern Airways is an excellent opportunity to strengthen the Flybe network.
“We already operate flights at a number of common airports and this will enable passengers to connect to a greater number of destinations, across the UK and into Europe, all booked through Flybe.com."
In late morning trading, Flybe shares were nearly 3%, or 1p higher at 35p.
Back at the start of May, Flybe announced that Stobart Air, a subsidiary of transport firm Stobart Group Limited (LON:STOB), will provide two Embraer E195 aircraft under a combined commercial arrangement.
The two aircraft, based at London Southend Airport, will initially be operated by Flybe on behalf of Stobart, before migrating to Stobart operating the aircraft itself no later than January 1 2018.
Flybe’s expansion moves came as two bigger discount carriers unveiled May traffic numbers today.
easyJet, Ryanair report May passenger growth
FTSE 100-listed easyJet PLC (LON:EZJ) reported traffic growth of 9.5%, carrying 7.51mln passengers last month , while its load factor - how full the planes are - was unchanged at 91.5%.
On a rolling 12-month basis, easyJet’s passenger numbers rose by 8.2% to 77.33mln and the load factor ticked up to 91.9% from 91.4%.
Meanwhile, Irish carrier Ryanair PLC (LON:RYA) reported an 11% jump in traffic in May to 11.8mln passengers, while its load factor rose to 95%, up from 94% the year before.
On a rolling annual basis, Ryanair’s passenger traffic was up 13% to 122.5mln
In reaction to the solid traffic numbers, easyJet shares were up 0.8%, or 11p at 1,355p, but Ryanair shares slipped 0.4%, or €0.08 lower to €18.06.