The lossmaking regional airline business of British Airways, given away for a song two years ago, has transformed profits at FlyBe.

The fast-growing regional carrier today booked record underlying pre-tax profits of £35 million in the year to the end of March, more than double the previous year.

FlyBe also shrugged off the doom and gloom in the industry which has seen profits at BA, headed by Willie Walsh, and budget airline Ryanair evaporate this summer.

It said its profits in the three months to the end of June were up 14% to £12 million on 18% more passengers at just over two million.

“It is because our business model is more resilient,” said FlyBe chairman Jim French. “Around 45% of our passengers are pure business passengers with less than 20% flying for leisure. The rest are regulars visiting friends and family or second-home owners.

“What is important for our passengers is the daily frequency with which we fly to our destinations. In that sense we are a bus service in the skies for our passengers.”

While FlyBe was transformed by taking on the troubled BA Connect regional business, it is the carrier's migration to a fleet of new, fuel-efficient Bombardier and Embraer aircraft that has boosted profitability.