Jet2 owners’ profits on cruise control after £17m travel delays bill

A LANDMARK ruling from the Supreme Court has meant that Leeds-based Dart Group’s profits have taken a dip, though revenues remain on the up.

Dart Group consists of its Jet2 brand leisure travel businesses; Jet2holidays and Jet2.com, which together employ 700 people in Leeds, and logistics firm Fowler Welch.

The firm reported taking 3m passengers to travel destinations across Europe in the year to 31 March 2015.

Unaudited group turnover was up to £1.25bn, compared to audited results from the year ended 31 March 2014, which showed turnover of £1.12bn.

However the firm did dip overall in pretax profits, from £42.1m last year to £40.2m this year.

This was due to an exceptional provision of £17m for historical flight delays following a Supreme Court ruling delivered in October of 2014.

Jet2.com was refused permission to appeal against a Court of Appeal’s earlier judgment, relating to a flight from Malaga to Manchester in 2011. This provision has led to operating profit falling by 32% to £33.6m.

Dart Group’s logistics business Fowler Welch saw its pretax profits plateau at £3.3m, after £400,000 of start up losses from its joint venture in Kent storing and packing exotic and organic fruits.

Chairman of the Dart Group Philip Meeson said: “Both our Leisure Travel and Distribution & Logistics businesses have got off to a good start to the new financial year, with strong demand for holidays and distribution business wins.

“Notwithstanding the tragedy in Tunisia and uncertainties in Greece, we are optimistic that Group performance for the financial year to 31 March 2016 will exceed current market expectations.

“Looking further ahead, we note the considerable increase in capacity planned by several low cost airlines over the next few years.

“We believe the continued expansion of our package holiday product, together with the development of our directly contracted sun and city hotel portfolio differentiates our Leisure Travel business, giving us confidence for our continued profitable growth.”