Breaking news: Jet2 issues profit alert
THE parent company of low-cost airline Jet2 today issued a profits warning following a lower than expected number of passengers this winter.
Dart Group, which moved its head office to Jet2's Low Fare Finder House at Leeds Bradford Airport last year, said that although its Fowler Welch-Coolchain distribution business had continued to perform well, winter trading in its aviation business “has not met expectations”.
In a trading statement Dart said: “In the winter season, the forecast growth in passenger volumes has not been achieved and similar volumes to last year are now expected to be carried.
“The resultant lower yield and load factors have reduced the winter revenue expectations by about 6% with a consequential reduction in the group's expected pre-tax profits for the year.”
By midday shares in the aviation and distribution company had fallen by around 7.5% – down 2.25p to 27p.
At the half-year stage, the company announced a pre-tax profit of £18.4m on turnover of £252.9m.
It warned then that underlying profits would be “significantly reduced” from last year because of winter revenues being lower than previously anticipated and an increase in aircraft maintenance costs.
