Business and leisure airline Flybe has announced plans to cut a further 500 jobs on top of 700 redundancies made during the past two years - despite reporting a return to profit.
Pre-tax profits were £13.8 million for the six months to the end of September, compared with a loss of £1.6 million a year earlier.
The company, which operates out of Birmingham Airport, said its turnaround plan was on track to make £40 million of savings this year and £45 million in 2014-15.
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The latest job losses and other cost reduction plans - which will be implemented immediately - are set to deliver further savings of £7 million this year and £26 million next year.
As part of the cost-cutting programme some routes could also “possibly” go, chief executive Saad Hammad said.
“It was clear to me that the existing cost savings were necessary, but we simply needed to do more and to do it immediately. Most of the immediate actions are completed, being implemented or already being consulted on,” Mr Hammad added.
“Unfortunately there is a proposal for further redundancies. We will consult with the trade unions and employees to ensure that this is done fairly and delivers the right outcome for the business.
“While the economic environment remains challenging, the board is confident that the actions will provide a firm basis for future growth.
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“We will make Flybe the best local airline in Europe. This is ambitious, but achievable provided that we can transform our cost base and efficiency now.”
However, the proposed job losses and a recent boardroom restructuring have angered unions and employees.
One employee, who did not wish to be identified, questioned the
“We are shocked by the job cuts. We have lost a lot of experience now Jim French has gone and question what skills and knowledge of the airline industry Mr Laffin will bring to Flybe,” said the long-serving worker. “A lot of changes have been made very quickly.”
Group revenues rose to £351.1 million in the six months, up from £340.8 million in the same period last year.
The carrier now has 96 aircraft in its fleet, with 28 belonging to Flybe Finland, its joint venture with Finnish Air.
Passenger numbers increased 5.6 per cent to 4.3 million in the first half of the year.
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The company said it was concentrating on establishing the airline as a “regional branded airline giving a nimble and customer-friendly, scheduled service for both business and families.” It also said the reorganisation would make Flybe “become the leading regional provider for mainstream European airlines.”
Flybe also confirmed that it planned to rationalise its route network, review fleet mix, remove surplus capacity and improve aircraft and crew utilisation.
It also pledged to reduce costs further and verified that all aspects of the business were being reviewed to drive further savings.