Dart Group confident despite profits slide

The group, based at Leeds Bradford airport, said it was a "reasonably satisfactory" year in challenging conditions for its airline business.

Underlying pre-tax profits for the year to the end of March fell to 19.1m from 28.8m a year earlier. Revenues dipped by 5m to 434m.

Jet2.com was forced to scale back its flight schedule during the year as demand ebbed, especially during off-peak and winter months, with flights to skiing destinations particularly affected. The airline reduced its seat capacity seven per cent over the year.

Instead it focused on expanding flights to "far sun" destinations such as Cyprus, Egypt and the Canary Islands, which are out of the range of some budget competitors.

Chairman Philip Meeson said: "With the contribution of passengers from Jet2holidays alongside our other income streams, we feel optimistic that, provided we are flexible, continue to innovate and to offer really great value fares, our aviation business will prosper."

Since the year end, the airline suffered because of the ash cloud from Iceland's volcanic eruption, which cost it about 3m in profits. Dart said cancelling more than 400 flights and accommodating and repatriating passengers and holidaymakers has hit profits by about 350,000 a day.

The group's Fowler Welch-Coolchain distribution business, which transports chilled food for supermarkets, had an "encouraging year."

It has bought a 500,000 sq ft warehouse in Manchester, which it hopes will significantly expand its presence in the north west.

The group ended the year with net cash of 52.2m and said Fowler Welch-Coolchain is "well positioned in its marketplace to exploit further opportunities as a result of ongoing consolidation within its sector".

"In the current trading environment, both businesses have started the year reasonably satisfactorily, despite the disruption caused by the volcanic ash," said Mr Meeson. "With increasing demand for our distribution services and a carefully tailored airline flying programme, we are reasonably well placed to deliver improved financial performance in this financial year."

Dart said in the light of current trading, it is increasing its final dividend by 5.6 per cent to 0.75p per share.