Just weeks after issuing a profit warning, the board of Flybe Group has begun a “comprehensive review” of the company’s strategic options as it looks to overcome challenges facing the airline industry – higher fuel prices, uncertain demand and a weaker pound.

Flybe dates back to 1979 and serves around 8 million passengers a year. The carrier is Europe’s largest regional airline and flies more UK domestic flights than any other. It currently operates over 200 routes serving 15 countries from 80 departure points in the UK and Europe.

Recent reports state that the group has been struggling to recover from a costly IT overhaul and has been trying to reduce costs. As a result of the review, the sale of the group has become an option as it has seen a dramatic 75 percent decrease in its share price value since the release of the profit warning last month.

Flybe said other options include “further capacity and cost saving measures” as well as initiatives to strengthen the balance sheet and preserve cash resources.

Last month, Flybe's chief executive, Christine Ourmieres-Widener, said

"Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs," she said at the time.