Jet2 hit by compensation claims

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​Jet2’s parent company Dart Group announced a fall in profits after making an exceptional provision of £17m for possible passenger compensation claims relating to historical flight delays which occurred over the past six years due to technical reasons.

​The Leeds-based firm ​said that after this exceptional item, pre-tax profits fell eight per cent to £71.7m ​ in the six months to September 30.

​The​ Supreme Court​ delivered its​ ruling ​at the end of October.​

​Without the item, underlying operating profits at ​the ​leisure travel​,​ distribution and logistics group rose by 10​ per cent​ to £89.4m​

Group revenue increased 15​ per cent​ to £902.2m ​and underlying ​pre-tax ​profit ​rose 14​ per cent​ to £88.7m​.

Dart’s chairman Philip Meeson said: “We have been encouraged by the ​g​roup’s underlying operating profit growth of 10​ per cent​, particularly in light of the less than buoyant consumer demand and weak market pricing experienced in the early summer months.

“And, with winter 14/15 Leisure Travel bookings performing in line with expectations, the ​b​oard is optimistic that current market expectations for full year operating profit, before adjusting for the exceptional provision of £17​m, will be achieved.”