One Flybe

Transforming Flybe

Full Year Results – Year Ended 31 March 2014

Analyst and Investor Presentation 11 June 2014

One Flybe

Agenda

2

Overview - Saad Hammad, CEO

Financial Review

Transforming Flybe

One Flybe

Flybe reborn in FY14!

3

Back to profit after the 5Cs programme: a £25.3m underlying profit improvement • Cash + Costs + Configuration + Commercialisation Confidence • Profit improvement across all areas of the business • Delivered £47m of annual cost savings as promised

Balance sheet strength achieved: a £154.6m improvement in free cash • £150.1m net proceeds raised, £177.9m of free cash at 31 March 2014

Work initiated on legacy fleet commitments • Hand backs secured on 5 E195s – containing maximum cost to £27m in FY15 • 2 E175 deliveries scheduled for FY14 deferred to FY16

Shift to growth in UK • Record high passenger volumes of 7.7m (+6.9%) and load factors of 69.5% (+5.4 ppts) • New routes announced from existing bases in February

White label progress • £87.9m increase in contract flying revenues under management • JV losses significantly reduced

One Flybe

FY15 has started well and in line with expectations

4

Unit revenue momentum • Planned capacity reduction of 16% in Summer 2014 will reduce H1 FY15 total revenue, but …. • Lower yields continue to drive increases in load factor and revenue per seat

Unit cost performance in line with expectation • On track to deliver incremental £24m cost savings in FY15, totalling £71m as promised

New routes announced in February trading well • Demonstrates power of our new Route Assessment Model

Expansion at LCY announced, with flights commencing 27 October • 5 Q400s acquired to lower aircraft ownership costs

Targeting to announce new codeshares this Summer

Progress on grounded E195 aircraft • Mitigations underway, e.g. Summer 2014 white labelling • Plan to fly 3 aircraft on Flybe UK routes in Winter 2014/15

Brand re-launched and Purple Way cultural change programme being rolled out

One Flybe

0 50 100 150

Air France / KLMLufthansa Group

LOT Polish AirlinesAlitalia Cityliner

SASOlympic Air

IAGPGA - Portugalia Airlines

Estonian AirLuxair

airBalticTAROM

Air IcelandMontenegro Airlines

Flybe*Air Nostrum

WideroeEastern Airways

LoganairBraathens Regional

Cityjetbmi Regional

NextjetAer Arann

Malmo AviationSwiftair SA

Twin JetDarwin Airline

DAT - Danish Air TransportAurigny Air Services

SkyWork AirlinesAir Corsica

SATA Air AcoresBinter Canarias

Aviaexpress CompanyCarpatair

Air Alps

Independents

Flag carriers

Leveraging significant scale

Source: ACAS as at 25 November 2013 * Flybe fleet as at 31 Marc h 2014

Regional aircraft (<120 seats) in Europe by Airline

• Europe’s largest independent regional airline

• Largest UK regional airline:

‒ 70 aircraft, 7 aircraft and crew bases

‒ c1,800 FTE employees, 7.7m passengers

‒ Over 200 routes serving 64 airports – 28 UK, 36 European

‒ Codeshare agreements with BA, Etihad, KLM and Air France

• Europe’s largest regional white label provider:

‒ 28 aircraft in Finland JV (22 flying under contract for Finnair)

‒ c700 FTE employees in Finland

‒ 2 aircraft with Brussels Airlines

Flybe’s business dimensions in FY14

5

One Flybe

Agenda

6

Overview

Financial Review – Andrew Knuckey, CFO

Transforming Flybe

One Flybe

Financial highlights Revenue and costs

• Revenue under Flybe management up 11.1% to £868.4m

• Group revenue up 1.0% at £620.5m

• Group operating costs before restructuring down by 3.3% to £619.5m

Profit measures

• Underlying EBITDAR(1) up 55.7% to £98.9m

• Net restructuring and surplus capacity costs of £(1.9m) (FY13: £(12.8m))

• Underlying profit before tax(2) £1.7m vs. loss of £(23.6m) in FY13

• Profit before tax £8.1m vs. loss of £(41.1m) in FY13

Cash flow and balance sheet

• Adjusted operating cash inflow(3) of £16.4m vs. £3.1m in FY13

• Net funds £116.9m vs. net debt of £(66.3m) at March 2013

• Net assets £194.1m vs. £48.1m at March 2013

7

Underlying PBT improvement of £25.3m

£1.7m

Underlying EBITDAR up 55.7%

£98.9m

Revenue under management(4) up 11.1% £868.4m

(1) Underlying EBITDAR before restructuring defined as operating profit/(loss) after adding back depreciation, amortisation and aircraft rental charges and net restructuring costs of £0.2m (2012/13: £8.0m). (2) Underlying profit/(loss) before tax, restructuring and surplus capacity costs defined as profit/(loss) before tax, net restructuring and surplus capacity costs of £1.9m (2012/13: £12.8m) and revaluation gains/(losses)

on USD aircraft loans of £8.3m (2012/13: £(4.7m)). Surplus capacity costs represent the costs incurred in the year relating to capacity that is considered by management to be surplus as a result of restructuring decisions. (3) Adjusted operating cash inflow is defined as cash outflow from operating activities before restructuring and surplus capacity costs. (4) Includes Flybe’s joint venture, Flybe Finland.

Group operating costs (exc. restructuring) down 3.3%

£619.5m

Group revenue up 1.0% £620.5m

Improvement of £183.2m in net cash position

£116.9m

One Flybe

FY14 FY13 YOY change

£m £m £m

Operating results:

Flybe UK 3.9 (17.2) 21.1

Flybe Finland (0.8) (3.5) 2.7

MRO 2.2 0.7 1.5

Operating results before restructuring and surplus capacity 5.3 (20.0) 25.3

Group costs (3.6) (3.6) 0.0

Profit/(loss) before tax, restructuring and surplus capacity 1.7 (23.6) 25.3

Revaluation gains/(losses) on USD loans 8.3 (4.7) 13.0

Net restructuring and surplus capacity costs (1.9) (12.8) 10.9

Profit/(loss) before tax - reported 8.1 (41.1) 49.2

Tax charge (0.1) (1.1) 1.0

Profit/(loss) after tax 8.0 (42.2) 50.2

Earnings/(loss) per share (basic), pence 9.0 (56.0) 65.0

Group results

8

Underlying PBT improvement of

£25.3m, with improvements in every part of

the business

Restructuring and surplus capacity costs of £(12.4m), less profit of £10.5m on disposal of LGW slots

£49.2m YOY improvement in

reported PBT

One Flybe

FY14 FY13 YOY change

Operational headlines

Passengers (m) 7.7 7.2 6.9%

Load factor (%) 69.5% 64.1% 5.4 pts

Seats (m) 11.1 11.3 (1.4)%

Sector length (km) 455 454 0.3%

Revenue

Passenger revenue (£m) 553.9 551.8 0.4%

Passenger yield (£) 71.55 76.16 (6.1)%

Contract flying revenue (£m) 16.2 12.6 28.6%

Other revenue (£m) 29.5 25.0 18.0%

Total revenue (£m) 599.6 589.4 1.7%

Passenger revenue per seat (£) 49.70 48.84 1.8%

UK – Revenue increase despite reduced capacity

9

Load factor up 5.4ppts,

passengers up 6.9%

Passenger revenue per seat up 1.8% - 5.4 ppts improvement in load factor equates to 8.4% impact, more than offsetting yield decline of (6.1)%

White label revenue from

Brussels Airlines, other revenue

includes charter, cargo, training and franchise

One Flybe

(53.81)

(0.95) (54.76) 0.25

(0.60)

(0.97) 1.74

0.130.33

(53.86)

(53)

(54)

(55)

(56)

(57)

2012/13Operating cost

per seat

Foreignexchange

2012/13Operating cost

per seat atconstantcurrency

Fuel Net airport, enroute charges

and groundoperations

Aircraftownership and

maintenancecosts

Staff costs Marketing anddistribution

costs

Otheroperating

expenses

2013/14Operating cost

per seat

Op

era

tin

g co

st p

er

seat

exc

l.re

stru

ctu

rin

g &

su

rplu

s co

sts

(£)

UK – Costs benefit from turnaround plan

10

Savings from

turnaround plan

Effective USD rate moved from 1.61 to

1.55

Effective cost per tonne decreased

from $1,002 to $982

More contract flying by UK fleet, partially offset by

cost savings

Unit costs (at constant currency)

down 1.6% at £53.86

One Flybe

FY14 FY13 YOY change

£m £m £m

Revenue 599.6 589.4 10.2

Fuel (120.0) (122.6) 2.6

Operating costs excl. fuel, finance & ownership (378.2) (394.3) 16.1

Underlying EBITDAR 101.4 72.5 28.9

Margin 16.9% 12.3% 4.6 pts

Finance and ownership (97.5) (89.7) (7.8)

Underlying profit/(loss) before tax 3.9 (17.2) 21.1

Margin 0.7% (2.9)% 3.6 pts

Revaluation gains/(losses) on USD loans 8.3 (4.7) 13.0

Net restructuring and surplus capacity costs (1.9) (7.0) 5.1

Profit/(loss) before tax 10.3 (28.9) 39.2

UK – £21.1m improvement in underlying profit

11

Underlying EBITDAR margin

up 4.6ppts to 16.9%

£21.1m improvement in underlying PBT

One Flybe

FY14 FY13 YOY change

£m £m £m

Contract flying 216.7 132.4 84.3

Passenger revenue 26.9 30.6 (3.7)

Other revenue 4.3 4.2 0.1

Total revenue 247.9 167.2 80.7

Fuel (62.3) (41.3) (21.0)

Operating costs excluding fuel and aircraft ownership costs (145.7) (103.6) (42.1)

EBITDAR (1) 39.9 22.3 17.6

Margin 16.1% 13.3% 2.8 pts

Finance and ownership (40.9) (28.8) (12.1)

Loss before tax

White label 6.3 4.6 1.7

Scheduled flying (7.3) (11.1) 3.8

Total (1.0) (6.5) 5.5

Margin (0.4)% (3.9)% 3.5 pts

Tax credit 0.2 1.6 (1.4)

Loss after tax (0.8) (4.9) 4.1

Flybe Group - 60% share of loss after tax (0.5) (2.8) 2.3

Other net costs including interest (0.3) (0.7) 0.4

Loss after tax (0.8) (3.5) 2.7

Finland JV – Results show significant YOY improvement

12

Full year impact of 12 E190 White Label operation

Share of net loss fell markedly

Both white label and scheduled performances

improved significantly,

although scheduled continued to make

a loss

One Flybe

FY14 FY13 Change

£m £m £m

Revenue 35.4 40.5 (5.1)

Operating costs (before restructuring and surplus capacity) (33.2) (39.8) 6.6

Adjusted profit/(loss) before tax 2.2 0.7 1.5

Restructuring and surplus capacity costs - (5.8) 5.8

Profit/(loss) before tax 2.2 (5.1) 7.3

Operational headlines

Flybe man hours ('000) 186 214 (28)

Third party man hours ('000) 269 312 (43)

Total man hours ('000) 455 526 (71)

MRO – Significant profit growth

13

(13.5)% reduction in man hours and (12.6)% in revenue more than offset by 16.6% cost savings

One Flybe

March

2014

March

2013YOY change

£m £m £m

Airport landing slots - 8.5 (8.5)

Aircraft 147.0 140.4 6.6

Other property, plant and equipment 23.6 25.0 (1.4)

Joint ventures 12.4 13.2 (0.8)

Net funds/(debt) 116.9 (66.3) 183.2

Derivative financial instruments (7.6) 4.2 (11.8)

Other working capital (105.4) (81.5) (23.9)

Deferred tax 4.5 2.0 2.5

Other non-current assets and liabilities 2.7 2.6 0.1

Net assets and shareholders' funds 194.1 48.1 146.0

Group balance sheet transformed by equity issue

14

Sale of Gatwick slots to easyJet

Net assets of £194.1m

£150.1m net proceeds from

equity fund raise

£(20.5m) increase in

maintenance provisions

One Flybe

150.1

23.3 8.0

14.3 (12.8)(9.1)

(5.9)22.4

(12.4)177.9

40.5 218.4

0

50

100

150

200

250

Free cash atMarch 2013

Profit forperiod

Depreciationand

amortisation

Net workingcapitalbefore

restructuringcosts

Restructuringand surplus

capacitycosts

Transfer torestricted

cash

Investingactivities

Net proceedsfrom equityfund raise

Financingactivities

Free cash atMarch 2014

Restrictedcash

Total cash atMarch 2014

£m

Group cash flow

Significant reduction expected in 2014/15

Net cash inflow from operating activities of £16.4m (before

restructuring and transfers to restricted cash)

£12.3m from disposal of two Q400s and £17.5m received from slot sales,

less investment in one new E175

Includes £(25.4m)

repayment of borrowings

Net proceeds from March 2014 equity

fund raise

15

One Flybe

Restricted cash

• £(40.5m) at March 2014, increasing to £(45.4m) in April 2014

• Additional £(4.9m) re additional card acquirer exposure during Summer months

• £15.5m, or 34%, reduction in restricted cash since April 2014

• Restricted cash now £(29.9m)

• Further reductions expected

BRAL pension scheme – triennial actuarial valuation at 31 March 2013

• Ex-BA Connect scheme

• Closed to future benefit accrual in October 2007

• 1,450 members – 1,100 deferreds, 350 pensioners

• £130m assets – 55% bonds, 45% equities and equivalents

• March 2013 triennial valuation agreed:

• Deficit of £7.0m

• Agreed recovery plan of £0.5m per annum up to next valuation at March 2016

Financial – Other

16

One Flybe

Agenda

17

• Overview

• Transforming Flybe

Overview

Financial Review

Transforming Flybe Saad Hammad - CEO

One Flybe

How Flybe is creating value

• Flybe branded airline in UK and white label regional services for European flag carriers

• Flying thin regional routes, unservable by mainstream airlines with larger aircraft and seat capacity

• Connecting 7.7m UK customers

• Faster than road and rail, which are the principal alternatives

• Translates into time-saving access to the world from the regions

WHAT WE DO HOW WE DO IT VALUE CREATION

• Safe operations: No. 1 priority

• Right aircraft on right routes Predominantly turboprops; selective use of regional jets Route Assessment Model

• Neighbourhood airports, often with short runways

• High frequency schedule establishes local preference

• High punctuality, good service

• Competitive costs = competitive pricing vs. alternatives

• Best in class white label solution delivery (aircraft, crew, maintenance)

• The 4 Disciplines: Capital allocation Revenue/customer Cost Organisation

• Margin expansion

• Improved asset turn

• Network development

Improved shareholder returns

18

One Flybe

But, first we had to return Flybe to profit ……

19

…. through the 5Cs programme:

1. Maximise CASH

2. Reduce COSTS

3. Optimise CONFIGURATION

4. Improve COMMERCIALISATION

5. Rebuild CONFIDENCE

One Flybe

(1) Maximise CASH through self-help measures

20

• Sale of LGW slots to easyJet, raising £17.5m in 2013/14 Balance of £2.5m received 30 May 2014

• Deferral of 16 E175 deliveries from 2014-15 to 2017-19, saving c£20m of peak PDP

commitments in Winter 13/14

• Sale and leaseback of spares and disposal of stock raised c£5m • Strong working capital management

• Return to positive underlying operating cash flow

£16.4m before restructuring and transfers to restricted cash in 2013/14

One Flybe

(2) Reduce COSTS beyond Phases 1 and 2

21

• Cost savings of £47m delivered in FY14, including Immediate Actions

• Further £24m expected in FY15 as previously announced

£3m

30 30

10 15

7

26

0

10

20

30

40

50

60

70

80

2012/13 2013/14 2014/15

£m

£71m

£47m

Phase 1 benefits

Phase 2 benefits

Immediate actions

One Flybe

(3) Optimise CONFIGURATION

22

• Streamlined organisation = One Flybe

• Reduced number of bases from 13 to 7

• Rationalised route network Too many loss making routes Exited 30 routes, change frequency or gauge on further 25

• Removed surplus aircraft capacity 9 E195s (out of 14) grounded through Summer 2014 Of the 14 E195s, 5 hand backs by December 2014, containing FY15 cost to £27m

• Embraced active fleet management Right aircraft for the right route

• Improved aircraft and crew utilisation Block hours per aircraft per day up 2.3% YOY – more to come in FY15

• Top tier punctuality maintained OTP in FY14 of 84%, in line with prior year

One Flybe

(4) Improve COMMERCIALISATION

23

• Refocused network development Robust route assessment model, signed off by Commercial, Operations and Finance 100+ potential new routes assessed since Nov, 14 announced by end-May, early trading encouraging

• Strengthened route management Weekly disciplines, improved reporting and focus on CPBH as well as RPS

• Optimised pricing and revenue management New algorithmic pricing architecture with attractive lead-in fares Load factors at record high, revenue per seat continues YOY growth

• Delivered step-change in marketing impact Including enhanced digital and social media presence

• Added significant muscle to commercial team Including external recruits for CCO, Head of Revenue Management, Head of Network Planning, Director

of Marketing, Director of Communications and PR

• Establishing commercial partnerships New airport deals, franchisee (Stobart Air) and codeshares in development

One Flybe

(5) Rebuild CONFIDENCE of all stakeholders

24

• Pro-active customer interactions

• Active engagement with employees and Unions

• Rebalanced supplier relationships

• European governments and regulators

• Re-established credibility with business partners

• Secured investor support

One Flybe

The 5Cs returned us to profitability

25

1. Maximise CASH

2. Reduce COSTS

3. Optimise CONFIGURATION

4. Improve COMMERCIALISATION

5. Rebuild CONFIDENCE

One Flybe

Flybe is now ready for the 4Ds

26

• Relentless customer focus

• Route assessment model

• On-time performance

• Delivery on cost projects

• Unit cost performance

• Optimise productivity

• Right aircraft on right routes

• Improved aircraft utilisation

• Targeted growth

Capital Discipline

Revenue Discipline

Cost Discipline

• Right people in right roles

• Commitment to the Purple Way

• Make Flybe a great place to work

Organisation Discipline

Embedding 4 Disciplines across the organisation

One Flybe

Our 6 key initiatives for FY15

27

1. Resolve legacy fleet commitments

2. Deliver brand re-launch

3. Drive growth in our scheduled branded UK business

4. Continue to build management capability in the business

5. Develop white label and franchising partnerships

6. Complete the review of non-airline assets

One Flybe

Brand re-launch

28

Advertising and website (immediate) Aircraft Livery (over 3 years) New uniform (July 2014)

Purple Onboard Purple

Disembark Gift On Time Celebration

& Purple Music 60:60 On Time

Guarantee Flybe Loves Service

One Flybe

Purple Power will fuel our journey

29

At Flybe, we define Purple as the 5 Ps: PERFORMANCE:

• Professional, efficient, punctual POSITIVITY: • Happy, respectful, accentuates the positive PASSION: • Dedicated, willing to go the extra mile PEOPLE-FOCUS: • Caring, helpful, empathetic PLAYFULNESS: • Creative, fun, not afraid to be unconventional at times

By unleashing the power of Purple, we

will make our customers happy, our employees happy and

our investors happy

PURPLE MATTERS!

One Flybe 30

0

Service Level

Performance

Q1 CY13 9.2%

Q2: 27.2%

Q3: 30.4%

Q4: 64.0%

Q1 CY14 82.2%

Customer interaction showing Purple impact already

39.2%

24.4%

20.2%

9.3%

2.6%

0%

10%

20%

30%

40%

50%

Q1 CY14 revenue of £614k through contact centre is up 21.6% vs. prior year

Call abandon rates (%) Service Level Performance

(% calls handled within 20 seconds)

One Flybe

We are on track with our fund raise objectives

Strength (£68m)

Profitable Growth (£82m)

Working capital to strengthen the balance sheet

Reduce fleet ownership costs

Improve productivity

Enhance service to customers

Branded scheduled commercial expansion

White label flying expansion

Progress Update

Well on track Work in progress Behind schedule

• Year end free cash of £177.9m • 34% reduction in restricted cash to date

• 14 new routes announced – performing well • LCY operations begin end-October 2014 • New franchise agreement with Stobart Air

• Some mitigation of grounded aircraft costs through summer contracts with Aurigny and Helvetic

• Number of proposals submitted for long-term white label solutions

• Acquiring 5 LCY aircraft from lessors, resulting in lower ownership costs

• Systems projects under way – one already delivered (Electronic Flight Bag); others scoped

• Brand re-launch in April 2014 • New codeshares in development

31

One Flybe

Summary – Flybe reborn!

32

Delivery in FY14 • Back to profit after the 5Cs programme

• Work initiated for legacy fleet commitments

• Shift to growth in UK

• White label progress

• Balance sheet strength achieved

FY15 has started well – key initiatives for the year: • Resolve legacy fleet commitments

• Deliver brand re-launch

• Drive growth in our scheduled branded UK business

• Continue to build management capability in the business

• Develop white label and franchising partnerships

• Complete the review of non-airline assets

We will become the best local airline in Europe

One Flybe

Transforming Flybe

2013/14 Full Year Results

Analyst and Investor Presentation 11 June 2014

One Flybe

Supplementary information

34

Group revenues and profits

Flybe UK – Impact of fuel

Fleet under management

Flybe UK – Hedging positions

Financial calendar

Key risks and uncertainties

Key initiatives for FY15

One Flybe

Key risks and uncertainties (1)

35

Key risks

1. Safety and security

2. Competitive environment

3. Regulatory/environmental changes

4. Extraneous events, e.g. epidemics or natural disasters

5. Reputational risk

Mitigation

- Safety and security is number 1 priority at Flybe - Strong safety management system and appropriate

procedures in place

- Niche regional operator, operating high frequency, low density routes from local airports, often with short runways

- Operate environmentally sensitive , fuel efficient, predominantly turboprop, aircraft

- Engage with government and regulators through direct contact and industry organisations

- Procedures in place to respond quickly and communicate effectively with passengers and other stakeholders

- Procedures in place to respond to events with the potential to cause damage to Flybe’s reputation or brand

One Flybe

Key risks and uncertainties (2)

36

Key risks

6. IT systems and intranet

7. Relationships with employees

8. Fluctuations in fuel prices and forex rates

9. Unavailability of suitable financing

10. Failure to remove grounded aircraft costs, or have to take delivery of new aircraft surplus to requirements

Mitigation

- Formal disaster recovery plan in place - Robust security procedures in place, tested and reviewed

by independent 3rd parties

- Well developed consultation and negotiation processes with employees and unions

- Formal hedging policy in place – 60% hedged 12 months forward

- Maintain free cash equivalent to a minimum of 10 weeks’

operating costs

- Flybe is in a number of active discussions with airlines, lessors and aircraft manufacturers about removing burdensome aircraft commitments

One Flybe

Key initiatives for FY15 - (1) Resolve legacy fleet commitments

37

a) Grounded aircraft

14 E195s in fleet

5 being handed back by December 2014

3 operating throughout FY15, 2 more on short-term white label flying this Summer

b) Future aircraft delivery obligations

24 E175s due for delivery between 2015 and 2019

Engagement with: • Lessors on early handback of grounded aircraft; • Flag carriers in Europe on both sub-leasing and white label opportunities; and • Aircraft manufacturers on redeployment or re-absorption of future orders

We will continue to explore supplementary flying opportunities within our UK business

One Flybe

Key initiatives for FY15 - (2) Deliver brand re-launch

38

A single-minded focus on a distinctive customer proposition: time-saving and punctual travel for regional customers delivered with a smile

a) New customer promise:

To be “the fastest way from A to Flybe”, faster than rail and road Aiming to be on-time, every time

b) New look and feel:

Adoption of purple as our brand colour; New website, advertising, aircraft livery and on-board presentation

c) Reinvigorated product and service offering:

Simplified ticket names Our world-first 60:60 Guarantee On-board enhancements

d) The Purple Way

Purple not just as our new brand colour, but as a signifier of a new way of doing things

One Flybe

OUR GREAT OPPORTUNITY IS TO CONNECT BOTH THE UK AND EUROPE – AND BE ONE STOP TO THE W ORLDNo -one ’s b et t er p laced t o creat e an out st and ing

b rand ed air l ine co nnect ing

p oor ly served reg io ns

W it h sm all aircraf t fl ying

p rofi t ab le t hin rout es t o sho r t er runw ays at h ig her

f req uencies

A s w el l as co nnec t ing

p eo p le on a sing le t icket t o int ernat ional

carr iers at larg e ai rp o r t s

W hile b ui ld ing

up our p roven w hit e label service fo r m ainst ream

Euro p ean air l ines

GUERNSEY School holiday

BUT IT’S BEEN VERY PAINFUL TO GET OURSELVES BACK ON TRACK…

W e w ere suf fer ing f rom out -o f-w hack

cost s, seat -o f-t he pant s d ecisions

and a v ood oo -like lack o f f act s

So w e had t o t ake t w o st ep s b ack

w it h very t oug h, f ast chang es t o t urn o ur b usiness

ro und

But w it h m ore com p et i t ive

cost s, d iscip l ined d ecisions, st rong com m ercial

lead ership and a reinvig o rat ed

net w ork

W e ’re now

rest o r ing invest o r confi d ence and w e ’ve raised t he

m oney w e need t o m ake our b usiness real ly t ake o f f

MANCHESTER Client meet ing

The Purple Way – Our Story: Chapters 1 to 3

39

One Flybe

W E’LL TURN FLYBE INTO EUROPE’S BEST LOCAL AIRLINE

W e ’ l l g row into t he k ind o f m ag ical Purp le

b usiness t hat everyone know s

st raig ht aw ay is real ly sp ecial

A s w e b eco m e fam ous fo r t im e-

saving t ravel as a new p ub l ic t ransp o r t service

across Br i t ain and Europ e

Cust om ers, p ar t ners and

investo rs w ill love and reco m m end us and m ake us

t heir nat ural fi rst cho ice

W hile every one

o f us w i l l o nce ag ain b e co nfi d ent and b urst ing w it h

p r id e at w hat w e d o at Flyb e

Viva Flybe!

LONDON Family reunion

AND W ITH ALL OF US EMBRACING OUR MISSION TOGETHER…

Fo l low ing and real ly l iv ing t he START p rincip les

in every t hing w e d o

Br ing ing our new b rand and

o rg anisat io n t o l i fe by b eing help ful , hap py,

hum an and Purp le

A lw ays look ing t o t ake t he lead

in fi nd ing t he r ig ht answ ers t o m ake t hing s

b et t er

W hi le d evelo p ing ski l ls t o creat e

new o p p o r t unit ies, b u i ld our careers

– and have f un d o ing i t

STARTSafety

Teamwork

Alignment

Responsibilit y

Transparency

40

BY SPREADING OUR W INGS BUT STILLSTAYING DISCIPLINED…

W e ’ l l g row a st ro ng , d efend ab le

reg ional net work w it h t he r ig ht

aircraf t on t he r ig ht rout es

W it hout let t ing up o n our

o rg anisat io nal , cap it al, revenue or cost d isc ip l ine t o

keep p rod uct iv i t y high and sp end ing und er cont ro l

W hile o ur p ow er f ul new

b rand and Purp le W ay w i l l m ake our p erso nal i t y

real ly st and out and g et not iced

A s w e m ake

m ore and m o re improvement s to make sure we g ive

our custo m ers a t ruly f ant ast ic serv ice

EDINBURGH Conference

The Purple Way – Our Story: Chapters 4 to 6

One Flybe

Social media customer feedback

0

200

400

600

800

1,000

1,200

1,400

Twitter Facebook

Mar-13 Mar-14

Replies to social media messages

41

One Flybe

Key initiatives for FY15 - (3) Drive growth in scheduled UK business

42

a) Return to growth already underway

9 new routes launched from Birmingham and Newquay

Major expansion at London City, 5 routes already announced

b) Additional new route and base opportunities being evaluated

c) Extending our range of codeshare partnerships with other airlines

Enables us to offer our regional customers ‘one-stop to the world’

One Flybe

Key initiatives for FY15 - (4) Continue to build management capability

43

In the past two months, we have appointed:

a) CFO (Philip de Klerk)

b) Company Secretary and Legal Counsel (Annelie Carver)

c) MD for our Finnish joint venture (Maunu Visuri)

d) Head of White Label Business Development (Jochen Schnadt)

e) Director of Marketing (Martin Smith)

f) Director of Communications and PR (Andrew McConnell)

One Flybe

Key initiatives for FY15 - (5) Develop white label/franchising partnerships

44

a) Optimise current relationships - Finnair, Loganair

b) Work with Finnair to improve Flybe Finland’s scheduled flying performance

c) Build new partnerships New franchisee signed and in operation as of 5 June Short-term white label flying for Helvetic Airlines and Aurigny in Summer 2014 Additional new white label discussions under way (early stage)

One Flybe

Key initiatives for FY15 - (6) Complete review of non-airline assets

45

a) MRO

b) Training Academy

Target to complete review by end of H1 2014/15

One Flybe

• FY14 results announcement – 11 June 2014

• Farnborough Air Show – start 14 July 2014

• AGM – 23 July 2014

• FY15 Q1 IMS – 28 July 2014

• FY15 H1 close – 30 September 2014

• FY15 H1 results – 10 November 2014

• Capital Markets’ Day – November 2014, post FY15 H1 results

All dates to be confirmed

Financial Calendar

46

One Flybe

2013/14 2012/13 Change

£m £m

Revenues

Flybe UK 599.6 589.4 1.7%

Flybe Finland 247.9 167.2 48.3%

MRO 35.4 40.5 (12.6)%

Inter-segment sales (14.5) (15.6) 7.1%

Revenue under management 868.4 781.5 11.1%

Less: revenue from Flybe Finland joint venture (247.9) (167.2) 48.3%

Group revenue 620.5 614.3 1.0%

Adjusted profit/(loss) before tax

Flybe UK 3.9 (17.2)

Flybe Finland (0.8) (3.5)

MRO 2.2 0.7

Group costs (3.6) (3.6)

Group 1.7 (23.6)

Group revenues and profits

47

Increase in white label has driven revenue

growth in Finland

Group revenues up by 1.0%

Underlying PBT shows £25.3m

YOY improvement

One Flybe

Flybe UK – Impact of fuel

48

FY14 FY13 Change

Fuel, $ / metric tonne

Market rate $974 $1,018 $44

Effective price $982 $1,002 $20

GBP:USD rate

Effective price $1.55 $1.61 $(0.06)

Actual cost of fuel, £ / metric tonne 634 622 (11)

One Flybe

Flybe UK – Hedging positions

Jet fuel

• H1 2014/15 – 81% hedged at $959 per tonne

• H2 2014/15 – 69% hedged at $961 per tonne

• FY 2014/15 – 75% hedged at $960 per tonne

US Dollar

• H1 2014/15 – 72% hedged at $1.53

• H2 2014/15 – 72% hedged at $1.64

• FY 2014/15 – 72% hedged at $1.59

Euro

• Small net exposure of <€20m, no formal hedging

49

One Flybe

March

2014

March

2013Movements

Flybe UK

Embraer 118-seat E195 regional jet 14 14 -

Embraer 88-seat E175 regional jet 11 9 2

Bombardier 78-seat Q400 turboprop 45 47 (2)

70 70 -

Flybe Finland

ATR 48-seat ATR42 turboprop 2 2 -

ATR 68- and 72-seat ATR72 turboprop 12 12 -

Embraer 76-seat E170 regional jet 2 2 -

Embraer 100-seat E190 regional jet 12 12 -

28 28 -

Group fleet under management 98 98 -

Held on operating lease 89 88 1

Owned and debt financed 9 10 (1)

Group fleet under management 98 98 -

Total seats in fleet 8,410 8,390

Average seats per aircraft 85.8 85.6

Average age of fleet (years) 5.9 5.1

Group – Fleet under management

50

2 E175s acquired in

December 2013 and 2 Q400s sold in May

2013

Fleet age remains low at

5.9 years

One Flybe

Legal disclaimer

51

This presentation has been prepared by Flybe Group plc (the “Company”). This presentation does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or in any other entity, nor shall this document or any part of it, or the fact of its presentation, form the basis of, or be relied on in connection with, any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any other company.

The information contained in this presentation has not been independently verified. This presentation does not purport to be all-inclusive or to contain all the information that a prospective investor in securities of the Company may desire or require in deciding whether or not to offer to purchase such securities.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its affiliates (within the meaning of Rule 405 under the US Securities Act 1933) (“Affiliates”), members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation or any other material discussed verbally. None of the Company or any of its Affiliates, members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

The information in this presentation includes forward-looking statements which are based on the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements, as well as those included in any other material discussed at any analyst presentation, are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures. In light of these risks, uncertainties and assumptions, the events or circumstances referred to in the forward-looking statements may differ materially from those indicated in these statements.

Forward-looking statements may and often do materially differ from actual results. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. Forward-looking statements speak only as of the date of this presentation. Subject to obligations under the listing rules and disclosure rules made by the Financial Services Authority under Part VI of the Financial Services and Markets Act 2000 (as amended), neither the Company nor any of its affiliates, or individuals acting on its behalf, undertakes to publicly update or revise any such forward-looking statement, whether as a result of new information, future events or otherwise. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise.

The information and opinions contained in this presentation and any other are material discussed verbally are provided as at the date of this presentation and are subject to verification, completion and change without notice.

In giving this presentation, neither the Company nor its advisers and/or agents undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.