Dart Group's expansion pledge at airport to create new jobs

The parent of budget airline Jet2.com is increasingly competing with Irish carrier Ryanair at the airport, but saw record numbers of passengers this summer.

More than 1.1m passengers flew with Jet2.com from Leeds Bradford to 41 sun and city destinations this summer. It said expansion at the airport next year will create 145 new jobs for the summer season.

The airline's performance helped Dart Group report six months of surging profits and turnover. Pre-tax profits lifted 38 per cent to 38.7m for the six months to the end of September, while group sales were up 25 per cent to 340.4m.

Chairman and chief executive Philip Meeson said a combination of tailored flight schedules to in-demand destinations at convenient times, plus popularity with passengers and growing add-on revenues helped the group's performance.

That was despite the tough economy and disruption caused by Iceland's volcanic eruption, which cost it 3m, he added.

"The holiday is really important, especially to families," said Mr Meeson.

"With the economic downturn people are saving their money for the family holiday.

"We have earned people's trust. We are a leisure airline with friendly, low fares."

The group's aviation revenues rose by 25 per cent to 270m, and it flew 2.4m scheduled passengers compared with 2.2m a year earlier.

Its number of routes surged to 117 from 94, and Jet2.com's load factor – a measure of how full its planes are – increased to 87.5 per cent from 81.3 per cent.

Revenue per passenger grew to 25.93 from 20.70, boosted by add-on services such as video screens, extra leg room and pre-ordered meals.

Ryanair opened a base at Leeds Bradford in March but Mr Meeson declined to comment on its rival's blossoming relationship with the airport.

Earlier this year Ryanair said it would grow at Leeds Bradford despite cutting winter capacity by 16 per cent elsewhere, thanks to the airport cutting charges in return for guaranteed passenger numbers.

"I don't know anything about that," said Mr Meeson. "All I know is we have 12 aeroplanes at Leeds Bradford flying to great leisure destinations."

He reiterated the airline's commitment to Leeds Bradford, which is owned by private equity firm Bridgepoint Capital.

"Leeds Bradford was our first base and is still to this day our largest base in terms of passenger numbers," he said. "With our head office at the airport too we really do see it as our home.

"We find the airport and its management good to work with. They are encouraging us to grow."

He said the airline has "listened to feedback" from customers to introduce new destinations and flights next year from Leeds.

It will add weekly flights to Funchal in Madeira from February and a new weekly service to Bodrum in Turkey will start in June.

Services to the Spanish resorts of Malaga, Alicante, and Palma will include double daily flights during peak summer.

Jet2.com has also added 100 per cent more Saturday and Sunday flights between Leeds Bradford and Geneva for this winter.

Across its entire fleet Jet2.com has increased its seat capacity this winter by 29 per cent, also driven by its first winter of services from East Midlands airport.

Next summer it is upping capacity by 26 per cent.

Dart now operates from eight bases across the north, including one recently opened in Glasgow.

Its holiday business, Jet2holidays, carried 71,000 passengers, an increase of 51 per cent. It sealed a distribution deal with national travel chain TUI Travel.

Dart's logistics business, Fowler Welch-Coolchain, delivers chilled food and flowers for retailers. It grew sales by 23 per cent to 70.4m, aided by its new 50,000-pallet distribution centre in Heywood near Manchester.

Dart upped its interim dividend to 0.4p per share from 0.36p.

The group typically reports losses during its second half and Dart said it expects to report increased losses in the six months to the end of March, due to investing more for growth.

Despite this, it expects to report full-year results ahead of City expectations of 27m pre-tax profits. Shares rose 5.3 per cent to 89.5p.

"They seem to have got the model quite nicely now," said analyst Chris Thomas at Arden Partners. "That's giving them the confidence to put the foot on the accelerator in expanding capacity."

From the roots of flower power

Dart Group traces its roots back to the early 1970s when Art Carpenter formed Carpenter's Air Services to fly flowers from Guernsey to the UK using cargo aircraft.

Later becoming Express Air Freight, in 1978 it bought Handley Page Dart Herald aircraft to run its own flights between Bournemouth and the Channel Islands.

In 1983 Philip Meeson acquired the businesses.

In 1991 it joined the official list of the London Stock Exchange as Dart Group Plc and in 2003 moved to Leeds Bradford airport and launched Jet2.com.