The carrier, which operates several routes to and from Jersey, reported an adjusted pre-tax loss of £6.7 million in the year to 31 March, according to figures released on Thursday.
It is now planning to reduce the size of its fleet by returning six Bombardier Q400 aircraft to the firm from which they are currently leased, according to reports.
The move will help ease the carrier’s historic problem of having too many planes in relation to demand.
According to national media reports, Flybe is also planning to reduce its European offering and concentrate on improving its UK routes and establishing better links with regional airports.
The airline said the changes will not affect its Jersey flights.
Despite suffering losses, Flybe saw passenger numbers increase by 7.6 per cent to 8.8 million.
It also enjoyed a 13.4 per cent rise in group revenue to £707.4 million.
In a statement, Flybe chief executive, Christine Ourmieres-Widener said: ‘I am truly passionate about the airline industry and I see tremendous opportunities for Flybe to connect and engage with communities and to establish a reputation for excellence in serving our customers.
‘We will be successful in delivering by continually focusing on our costs, increasing our knowledge about who our customers are and what makes them tick, achieving industry-leading operational excellence and implementing a great digital platform.’
