FLYBE, the airline owned by the family of Blackburn Rovers benefactor Jack Walker, has announced record results.

Europe's largest low-cost regional carrier recorded pre-tax profits of £15.6million for the year ending March 2007, a £20million improvement on last year's loss.

Turnover has also risen 17 per cent to £355million.

Flybe recorded a 63 per cent increase in ancillary revenues - which includes baggage charging and the firm's non flight businesses such as cruises, its credit card and selling flowers and wine online.

The firm, which operates up to 152 routes depending on the time of year, expects passenger numbers to rise from five million to seven million over the next 12 months.

The increased passengers is expected to push turnover through the £500million barrier.

Flybe, based in Exeter, employs 3,000 people nationwide.

In a statement the company said it was investing $3billion on new environmentally friendly planes and was on target to achieve £40million of savings following its takeover of British Airways Connect.

Jim French, chief executive said: "The importance of the acquisition of BA Connect cannot be overstated.

"Flybe is now a much stronger business with good cash reserves, a more balanced network and a significantly reduced risk profile."