Birmingham-based regional airline Flybe posted third quarter trading figures in line with management expectations, after revealing a major expansion in the city.

UK airline total revenue rose slightly by 0.4 per cent to £137.6 million. Revenue per seat was up 2.3 per cent to £48.46 per passenger, while costs per seat – excluding fuel and restructuring costs – were down 5.2 per cent to £41.46 per passenger. Revenue created by its Finland-based services increased by 23.7 per cent.

Flybe recently announced a range of new destinations and expansion from Birmingham, and its turnaround is now accelerating, according to the statement.

Management set targets to deliver underlying benefits of £7 million in 2013/14 and £26 million next year, with around 500 proposed redundancies and estimated one-off and grounded aircraft costs of £14 million this year plus a further £27 million in 2014/15. It is now anticipated that job losses will total around 450, and work is continuing to reduce operational costs.

The board said it believed these actions were essential to provide a sustainable cost base and a platform to grow the business in the future.

Chief executive Saad Hammad said: “We are on track to deliver £40 million of annual cost savings from Phases 1 and 2 of the Turnaround Plan. The transformation of our cost base is being successfully delivered thanks to the hard work and determination of our people and with the support of all stakeholders.

“Taking decisive action gives us a strong platform to implement our strategy, achieve profitable growth and build sustainable value for our shareholders.”