Profits dip at Jet2.com’s parent

JET2.COM owner Dart Group today announced a 23% drop in profits reflecting a tougher trading environment.

Pre-tax profits for the Leeds-based company dropped from £36.3m to £28.1m for the half year ended September 20.

Turnover for the period was maintained at £272.7m. Net cash flow from operations of £12.2m was generated in the period (2008, £20.3m). 

Interim dividend will be 0.36p per share compared to nothing for the same period last year.

Dart said that Jet2.com had continued to focus on its core leisure routes from its bases in Belfast, Blackpool, Edinburgh, Leeds Bradford, Manchester and Newcastle. Jet2 operates 28 flights out of Manchester.

In total the budget airline flew 2.2 million passengers compared to 2.3 million for the same period 2008 with the total number of routes served rising to 94 from 75.

Ancillary revenue streams are continually being developed with gross revenue per passenger increasing to £20.70 during the half year (2008, £15.17).

Dart said that the increase was principally driven by its proprietary reservation system. Pre-ordered meals and advanced seat assignment have been particularly successful on some of its longer routes.

After a very strong performance in the previous year its freight and passenger charter business experienced reduced revenues reflecting a weaker market for charter services. In total, charter revenues were down 18% in the first half.

In a statement it said: “On an underlying basis, we expect full year trading to be in line with market expectations. 

“Jet2.com forward booking levels are encouraging and (logistics business) Fowler Welch-Coolchain continues to perform strongly.

“However, we expect the current challenging trading environment to remain for some time and we will continue to manage the business prudently while continuing to take advantage of market opportunities.”