Profits boost for Jet2 owner
25.07.08
Dart Group, the owner of Leeds Bradford Airport based budget airline Jet2, turned a £3.6 million loss into an £11.8 million pre-tax profit in the year to March. However, the AIM-quoted company, which runs the low-cost airline and also arranges the supply of chilled produce and other items to supermarkets through its Welch-Cool distribution arm, says underlying pre-tax profit fell 72.3 percent because of investment in Jet2’s expansion.
Dart, whose debts rose by £3.2 million to 25 percent of shareholders’ funds, is not paying a final dividend, despite an 23 percent turnover increase to £429.3 million in the year to March, because of the underlying profits fall and current economic conditions (including rising oil costs).
During the year Jet2 delivered 98.6 percent more items under its flagship Royal Mail contract, and aviation revenue per passenger rose 50 percent to £9.10, despite price resistance in the market. The budget airline’s capacity was increased by 35 percent, with extra aircraft at Manchester and Leeds Bradford, and an increase in routes from 114 to 133. Passenger volumes grew 32 percent to 4 million.
Profit before tax amounted to £11.8m, compared to a loss the previous year of £3.6m. In a statement, the company said that while summer 2008 trading remained very encouraging, the board had concluded that it was not appropriate to pay a final dividend given both the current economic climate and trading performance for the year to March 31 2008.
Following its launch in February 2007, more than 34,000 holidaymakers travelled with Jet2holidays.com, the group's tour operator, in its first year of operation. The company said: ‘We believe that there is an opportunity to significantly grow this segment of our business by packaging attractive hotels with Jet2 scheduled flights, offering flexible holidays to a wide range of destinations.'
‘Consistent with our aim to fly fuller planes, we also see Jet2holidays.com as a means of selling last minute flight inventory. This scheduled flight based activity will be supplemented by more specialist trips as exemplified by a series of New York shopping trips launched for this winter.'
‘Looking forward, Jet2 will continue to focus its growth on the leisure sector of the airline market. The group also intends to work more closely with the travel trade in making its flight and holiday offerings more accessible to all forms of distribution.’
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