Regional airline Flybe flew more passengers and saw ticket revenues improve over the past three months, despite higher fuel prices and the tough economic conditions.

The carrier, which flies from airports including Birmingham, Bristol, Cardiff, Doncaster, Edinburgh and East Midlands, flew two million passengers in the three months to June, a 7.7% increase on the same period in 2010 when excluding last year’s ash cloud disruption.

Average ticket income also rose by 3.4% to £62.27, with total revenues for the quarter to June up by 8.3% to £160.4m.

The Exeter-based group, which issued a profit warning in May saying trading had been hit by high oil prices, the weak economy and severe weather conditions, was also upbeat going forward.

Chief executive Jim French added current trading was "encouraging" with forward ticket sales for three months to October 6% ahead.

Despite the uncertain economic backdrop, the group is also maintaining its expectations for the year, he said. Before today’s update, brokers were forecasting full year profits to come in at between £23m and £25.3m.