Flybe has revealed it racked up nearly £20m in losses last year after embarking on ambitious expansion plans.

The largest independent regional airline in Europe plans to start reducing the size of its fleet after a slowdown in customer demand, as reported by Sky .

The low-fare airline reported a £19.9m pre-tax loss in the year to 31st March, compared to a profit of £2.7m last year.

The company said capacity growth had a negative effect on its profitability. It was also hit by a write-down of £4.8m linked to upgrading its IT systems. It expects further IT costs of around £6m linked to cancellation penalties on existing contracts.

Chief executive Christine Ourmieres-Widener said the current year was going well and the firm would be cutting capacity this year as it attempts to turn a profit.

The company is working on a new digital platform to attract customers, after the quality of its existing website was given as the main reason for customer dissatisfaction.

Flybe operates more UK domestic flights than any other airline and flies from a number of city airports around the UK, including Birmingham.

Photo credit: Flybe