Operating profit to exceed expectations at Dart Group

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Dart Group, the owner of Jet2.com and Jet2holidays, said it expects its operating profit for the full year to exceed market expectations.

The Leeds-based group said trading improved in the later summer months compared to the challenging market conditions experienced earlier in the season.

Flight only passengers grew by eight per cent to 3.07m, whilst its package holiday arm, Jet2holidays, took 771,000 customers on holiday, an increase of 21 per cent.

Jet2.com, flew 4.6m passengers in the six months to 30 September 2014, an increase of 12 per cent over the same period last year, though below the increased seat capacity of 13 per cent. The period saw a reduction in average ticket yield of 1.6 per cent, being particularly pronounced in our Canary Islands and Eastern Mediterranean destinations.

The group said its distribution and logistics business, Fowler Welch, continues to focus on growing its revenue pipeline and the development of existing and new business opportunities, although margins continue to be very tight.

The group’s reported operating profit for the six months ended September 30 is expected to be about 10 per cent ahead of the same period in the previous year. However, increased losses are expected in the second half, which it said are a function of the continued expansion of its seasonal leisure travel operations.

It said in a statement: “With winter 14/15 leisure travel bookings continuing to perform in line with expectations, notwithstanding the important post-Christmas booking period that is still to come, the board is optimistic that current market expectations for full year operating profit will be exceeded.”