Flybe, a regional airline, has said that it will have to lay off a lesser number of employees than previously thought following an increase in its business during the winter season.

The airline said that the turnaround plan is progressing well and produce substantial savings this year. The plan involves shedding jobs, cutting routes and grounding aircraft. The company said that it will now cut 450 jobs compared to 500 estimated in November. The company said that it is planning to reduce the costs associated with aircraft grounding.

Chief executive SaadHammad, "We are on track to deliver £40 million of annual cost savings from phases one and two of the turnaround plan by 31 March, and significant rapid progress has been made already. Taking decisive action gives us a strong platform to implement our strategy, achieve profitable growth and build sustainable value for our shareholders. We are well on our way to becoming Europe's best local airline."

Liberum analyst Gerald Khoo said: "Part of Flybe's strategy to improve its commercial performance is better revenue management, and there is clear evidence of this being delivered."