Dart Group ‘cautiously optimistic’ about profit growth

The company, which is based at Leeds Bradford International Airport, provided an update on trading for the first half of the financial year.

In a statement, Dart Group said: “Summer 2013 trading in our leisure travel businesses has been satisfactory despite the fine weather experienced in the north this year. Our leisure airline, Jet2.com, flew 4.1m passengers in the six months to 30 September 2013, an increase of 13 per cent over the same period last year, supported by the continued growth of Jet2holidays and its sales of great value package holidays.

“The business also achieved increases in ticket yields and load factors, though more recently yields, and therefore operating margins, have come under pressure.”

The company’s package holidays business, Jet2holidays, had a successful summer and continues to meet its passenger growth targets, the Dart Group said.

During the first six months of the year it took 634,866 passengers on holiday, an increase of 103 per cent over the same period last year.

The statement added: “This growth continues to be fuelled by further improvements to the Jet2holidays product range, underpinned by a relentless focus on providing a great value offering to our northern based customers.

“Our distribution and logistics business, Fowler Welch, continued to make good operational progress in the first six months but profitability was adversely affected due to the varied profile of volumes handled during late July, August and September.

“Nevertheless, the strategy of the business remains consistent; continuing to focus on growing its revenue pipeline and delivering operational efficiency improvements in a sector that continues to experience tight margins.”

The Dart Group said that its leisure travel operations are becoming increasingly seasonal as it continues to grow the business.

The statement added: “This will result in the group’s profit before taxation for the first half of the year being approximately 37 per cent ahead of the same period in the previous year, with increased losses expected in the second half.

“As a result, and with the important winter booking period still to come, the board remains cautiously optimistic in relation to profit growth for the financial year ending 31 March 2014.”