Leeds-based Jet2 owners report 12% turnover increase but passenger claims affect pretax profits

Leeds-based Dart Group, the Leisure Travel and Distribution & Logistics group, has reported an increase in overall turnover and Group operating profit due to travel brand Jet2holidays and Jet2.com.

For the financial year ending March 31st, the company’s turnover increased by 12% to £1,253.2m (2014: £1,120.2m) whilst underlying Group operating profit increased by 3% to £50.6m (2014: £49.2m), which reflects improved trading and continued investment in its Leisure Travel business.

Dart Group’s Leisure Travel business combines both our package holiday (Jet2holidays) and flight-only (Jet2.com) product.

However, the company’s pre-tax profit dipped by 5% to £40.2m (2014: £42.1m), after making a £17m provision for potential passenger compensation claims.

Furthemore, whilst underlying basic earnings per share increased by 29% to 31.72p (2014: 24.68p), after accounting for the exceptional provision, basic earnings per share reduced by 9% to 22.42p.

As for the future, Philip Meeson, the company’s chairman, said: “Both our Leisure Travel and Distribution & Logistics businesses have got off to a good start to the new financial year, with strong demand for holidays and distribution business wins. Notwithstanding the tragedy in Tunisia and uncertainties in Greece, we are optimistic that Group performance for the financial year to 31 March 2016 will exceed current market expectations.

“Looking further ahead, we note the considerable increase in capacity planned by several low cost airlines over the next few years. We believe the continued expansion of our package holiday product, together with the development of our directly contracted sun and city hotel portfolio differentiates our Leisure Travel business, giving us confidence for our continued profitable growth.”

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