Troubled airline Flybe has insisted it remains committed to the island despite warning that projected losses would be larger than expected.

The carrier has said it is looking forward to continuing to serve the Isle of Man community.

Flybe confirmed earlier this year it intended to re-establish a base in the island.

But this now comes amid fears the carrier could be set to scale back on its regional hubs.

Only last week it was confirmed in an Irish newspaper that Flybe was to scrap its Belfast City to Liverpool service from the end of this year.

And speculation is mounting that cutbacks elsewhere could create turbulence in places such as the Isle of Man.

In June this year Flybe confirmed to Isle of Man Newspapers that the airline will re-establish its former Ronaldsway base.

Flybe released this short statement to the Manx Independent: ’As previously stated, Flybe looks forward to continuing to serve the Isle of Man community from March 31, 2019 and to welcoming customers back on board including those travelling under its renewed three year contract with the Isle of Man Department of Health & Social Care.’

Asked to clarify if this meant Flybe still intended to set up a base at Ronaldsway from the end of next March, a spokesman repeated the same statement.

Flybe has been trying to plug spiralling losses under new chief executive Christine Ourmières-Widener.

The regional airline saw shares nosedive after it warned over full-year profits following easing demand and a £29 million hit from rising fuel costs and the weak pound.

The low-cost UK carrier, based in Exeter, said it is now expecting to report worse-than-expected losses of around £12 million for the year to the end of March 2019, even with a £10 million one-off boost to its accounts.

Shares plummeted by as much as 39% after the alert.

It comes just six months after the last profit warning from the group, which also suffered amid the Beast From The East snow and freezing weather disruption earlier in the year.

In its latest half-year update, Flybe said as well as an expected £29 million impact from fuel costs and a fall in the value of sterling, it was also seeing consumer demand weaken in domestic and near-continent markets in recent weeks.

This is set to continue into its second half, it has cautioned.

Currently, Flybe flights from the island are operated under an agreement with Stobart Air, a deal which will end on March 31 next year.

Last June, a company spokesman said: ’Flybe can confirm that the arrangement it has with franchise partner, Stobart Air, for the [Liverpool and Manchester] routes will end next year.

’And that, with effect from March 31, 2019, both will continue on Flybe’s own 78-seat Bombardier Q400 aircraft from a newly-established base.

’Flybe looks forward to continuing to serve the island community and to welcoming customers back on board including those travelling under its renewed three year contract with the Isle of Man Department of Health and Social Care.’

The airline later confirmed that new base will be at Ronaldsway.

The move was welcomed at the time by passenger watchdog Travelwatch after airport bosses confirmed discussions had been held with the airline.

Christine Ourmières-Widener, chief executive of Flybe, said: ’We have made progress in driving our unit revenues across the summer season, but we are now seeing a softening in the market.

’We are reviewing further capacity and cost-saving measures while continuing to focus on delivering our sustainable business improvement plan.’

The gloomy outlook comes despite a solid first half for Flybe as its boss pushed ahead with a turnaround.

Ms Ourmières-Widener said the group would ramp up efforts to make savings in the face of rising costs.