Dart Group cautiously optimistic about profit growth
JET2 owner Dart Group today said it remains “cautiously optimistic” about its profit growth for the financial year.
The company, which is based at Leeds Bradford International Airport, said Summer 2013 trading in its leisure travel businesses has been “satisfactory”, despite the fine weather experienced in the north this year.
In an update on trading for the first half of the financial year ending March 31 2014, the group said its leisure travel operations are becoming increasingly seasonal as it continues to grow the business. Dart said this will result in the group’s pre-tax profit for the first half of the year being approximately 37% ahead of the same period in the previous year, with increased losses expected in the second half.
Dart’s Jet2.com flew 4.1m passengers in the six months to 30 September 2013, an increase of 13% over the same period last year, supported by the continued growth of Jet2holidays and its sales of great value package holidays. The business also achieved increases in ticket yields and load factors, though more recently yields and therefore operating margins have come under pressure.
Dart said its package holidays business, Jet2holidays, had a successful summer and continues to meet its passenger growth targets. During the first six months of the year it took 634,866 passengers on holiday, an increase of 103% over the same period last year (2012: 312,000).
The group said its distribution and logistics business, Fowler Welch, continued to make good operational progress in the first six months but profitability was adversely affected due to the varied profile of volumes handled during late July, August and September. Nevertheless, the strategy of the business remains consistent; continuing to focus on growing its revenue pipeline and delivering operational efficiency improvements in a sector that continues to experience tight margins.
The group intends to announce its interim results for the six months to 30 September 2013 next month.
