Member Article

Leeds based Jet2 owners report 15% revenue increase but passenger claims hit pretax profits

Leeds-based Dart Group, have announced a growth in revenue thanks to travel brand Jet2, however they are also looking at a dip in pretax profit after making a £17 million provision for potential passenger compensation claims.

Revenues increased for the half year to September 30 from £787.1 million in the same period last year to £902.2 million, a 15% increase.

Pretax profit dipped to £71.7 million from £78.1 million, a decrease of 8%.

The firm said this was a result of a Supreme Court ruling delivered on 31 October 2014 over possible passenger compensation claims, which may be payable in certain circumstances, for historical flight delays which occurred over the past six years due to technical reasons.

The Group has made an exceptional provision of £17 million for these claims. After accounting for this exceptional item, overall profit before tax fell.

Chairman Philip Meeson said: “We have been encouraged by the Group’s underlying operating profit growth of 10%, particularly in light of the less than buoyant consumer demand and weak market pricing experienced in the early summer months.

“And, with winter 14/15 Leisure Travel bookings performing in line with expectations, the Board is optimistic that current market expectations for full year operating profit, before adjusting for the exceptional provision of £17 million, will be achieved.”

This was posted in Bdaily's Members' News section by Clare Burnett .