The Exeter based airline Flybe has announced losses of £2.2 million, despite increasing its share of the country's passengers.
It's disappointing news for the company, which returned profits of £5.7 million last year. It blames a drop in travellers and high fuel prices.
Flybe now boasts 28% of the domestic market and says ticket sales for the summer are already up. It's announcing new routes and predicts the stronger pound will also encourage holidaymakers.