Jet2 profit; cautious on future growth
01.08.09
A strong performance by budget airline Jet2 saw pre-tax profits to treble at its owners, the Dart Group. But its chief executive Philip Meeson said, in the current economic climate, the airline was taking a cautious approach to future growth. However, he added that this will include the introduction of more longer-haul flights.
In the year to March 31, Dart Group’s pre-tax profits trebled from £11.8m to £33.5m, with earnings per share rising to 19.3p against 6.2p the previous year. Shareholders will benefit from the reintroduction of a dividend payment of 0.71p a share.
Jet2, based at Leeds Bradford Airport, expanded leisure routes to sunshine destinations, mainly from Leeds and Manchester. However the economic downturn forced the airline to reduce the number of seats on summer 2008 routes by 21 percent and by nearly half on winter services. It also reduced the frequency of flights to the western Mediterranean and axed routes to some city destinations, which helped cut costs.
Mr Meeson said focusing on leisure routes and tailoring seat capacity to demand significantly boosted Jet2’s financial performance, with total aviation revenues growing by 6 percent despite of an overall 28 percent reduction in scheduled seat capacity. Passenger charter airline operations had a strong year due to both increased demand and additional aircraft availability. The group’s freight operations, particularly night flights for Royal Mail, continued to deliver significant revenues.
Mr Meeson added that the intention was to grow the airline both organically and through suitable acquisitions. He said: ‘Jet2 will continue to focus its growth in the leisure sector of the airline market. In the current trading environment, the key to success will continue to focus on matching flight schedules and frequencies to market demand. With our expected fuel requirements fully hedged and a carefully tailored flying programme, we are well placed to deliver satisfactory financial performance in this financial year in difficult trading conditions.’
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book leeds bradford airport hotel or leeds bradford airport car park at the lowest price, click on these links to two great leeds bradford airport parking and leeds bradford airport hotels price comparison pages.
