The Exeter-based carrier said it had been affected by a slowdown in demand, increased flight capacity across the industry and a succession of air traffic control strikes in France, which accounts for about 12% of Flybe’s capacity.

Flybe said it had increased passenger numbers by 9.2% to 2.3 million for the quarter from April to June, on the back of a 15.5% capacity increase as the airline launched 24 new routes. But this also led to a 4.1 percentage point drop in load factor to 70% compared to the same period in 2015.

The airline’s revenue rose by 8.8% during the quarter to £166.5 million from £153.1 million last year. But revenue per seat fell by 9.1% from £52.73 to £47.95 over the same period.

Chief executive Saad Hammad said: “The current outlook is very uncertain and we have limited forward visibility due to our late booking profile.

“We are yet to see the full impact on demand of the devaluation of sterling and the heightened consumer uncertainty after the Brexit vote. It is also too early to assess the potential demand impact of recent terrorist attacks.
 
“Flybe continues to make progress despite significant external challenges. We delivered a solid quarter through vigorous commercial execution and enhanced operational delivery.
 
“We are continuing to take action to reduce unit costs and moderate our seat capacity growth. While we currently face significant external risks, we have a strong balance sheet and cash position, as well as a disciplined and resilient organisation to take us forward.”