As the announcement of the failing to meet the projected profits came in, the shares of the UK’s largest domestic passenger carrier, Flybe, slipped steeply by 25%.

The domestic airline is operating from Cardiff, Edinburgh and Birmingham airports blamed the increasing fuel prices and decreasing interest of the passengers in air travel for forcing it to lag behind the targets.

The company earned profits of £22m, almost short by £2m and the shares of the company slipped from 230p to 172p.

Flybe’s Chairman and Chief Executive, Jim French, during an interview with the Telegraph said, “We haven’t had any angry shareholders. Obviously, there have been a lot of questions but no one has shouted at us.”

Flybe has cautioned its customers of possibility of increase in air travelling cost by £3 per passenger per sector on all flights from 1 September 2011 onwards.

The airline claimed that the charge is based on the fuel prices and will continue only if the prices of the oil remained above $75 per barrel and in case the prices remained below $75 per barrel consecutively for 28 days, the charges will be removed and if the prices remained above $75 per barrel for 28 days continuously, then again the charges will be introduced.