Profits double as growth soars for Jet2.com’s owners

Pre-tax profits have soared 49% to £134.6m at Jet2.com’s owner, Dart, as three million more passenger journeys were booked with the company in a “strong year” for growth.

This morning reporting its latest annual results to March 31, Leeds-headquartered Dart said it had been a year of strong passenger growth for both Jet2.com and Jet2holidays.

Group revenue increased by 38% to £2.3bn, up from £1.7bn in 2017; while pre-tax profits stood at £134.6m, a 49% rise from £90.1m the previous year. This rise includes a £20m gain on foreign exchange revaluations, whereas during 2017, the company saw a £10.9m loss.

A total of 10.3m passenger journeys were booked, a 46% increase from 7.1m the previous year. The listed firm said this included a 45% increase in demand for package holidays, with 2.5m customers booking a Jet2holidays package holiday; up from 1.7m

Average load factors, including from its new operating bases at Birmingham and London Stansted airports, increased to 92.2%. 

Dart said that average airline ticket yields stood at £73.65, down from £86.65 in 2017, due to “very competitive pricing in summer 2017″. However, the average price of a Jet2holidays package holiday grew by 3% to £633 (2017: £617) and as a result, revenue in its Leisure Travel business increased by 42% to £2,2bn from £1.5bn in 2017.

Dart said the increased profits reflected the continuing strong demand for its leisure products and that it had further strengthened since the start of the new financial year. Dart said: “Given current forward bookings we expect that Group profit before foreign exchange revaluations and taxation for the financial year ending 31 March 2019, will substantially exceed current market expectations.”

However, the firm was cautious about the current economic climate. Philip Meeson, chairman, said: “Looking further ahead, emerging cost pressures coupled with the overall uncertain UK economic outlook, particularly related to Brexit and how it may impact on consumer spending, means we remain unclear how demand will develop in the medium term.

“For the long term however, our strategy remains consistent – to grow both our flight-only and package holiday products. Real Package Holidays™ take considerable organisation and attention to detail and are not easily replicated by non-specialists. The Group dedicates significant resources to deliver an innovative and industry leading product and together with our scale, experience, competitiveness and customer focused approach, we believe we have a strong and resilient Leisure Travel business.”

The Board recommended a final dividend of 6p (2017: 3.897p), bringing the proposed total dividend to 7.5p per share for the year ended 31 March 2018 (2017: 5.272p).

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