Dart upbeat but warns of losses

Dart, which owns budget airline Jet2.com, said the bigger second half losses, from October to March, will be due to "continued growth". Dart's profits are typically weighted to the first half of its financial year, from April to September.

Shares fell 2.3 per cent to 74.25p, a drop of 1.75p.

The group, based at Leeds Bradford airport, said Jet2.com had a "satisfactory" summer despite disruption caused by the Icelandic volcanic ash cloud which grounded flights in the UK and northern Europe in April and May.

The ash cloud cost it 3m in profits and grounded more than 400 of its flights.

Jet2.com saw improved yields and load factors and an "encouraging" first summer of operation at East Midlands airport.

The group recently announced its eighth northern base at Glasgow, where it will start next summer.

Its holidays business, Jet2holidays.com, continues to grow strongly, it added.

Jet2.com is focusing on 'far sun' destinations such as Cyprus, Egypt and the Canary Islands, which are within the range of its fleet of aircraft, but out of range for some of its competitors.

The group's Fowler Welch-Coolchain business, which moves chilled goods for supermarkets via its fleet of more than 430 vehicles "continues to grow in line with the company's expectations".

Its new distribution centre at Heywood near Manchester is now operating and Dart said this is helping the business attract new customers.

Dart hopes to grow in the North West via the 500,000 sq ft warehouse.

Dart already supplies the full range of products sold by Tesco express convenience stores in the North East via its Tyne and Wear warehouse.