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Profits plunge at Leeds-based Jet2's parent company
The parent company of Leeds-based airline Jet2.com has seen pre-tax profits plunge by almost a quarter in the half year ended September 30.
Dart Group, which combines aviation interests alongside distribution group Fowler-Welch Coolchain, maintained turnover at 272.7m (2008: 272.8m) but saw-tax profits fall 23 per cent to 28.1m (2008: 36.3m).
Underlying pre-tax profits were also down by 23 per cent to 25.7m (2008: 33.5m).
Chairman, Philip Meeson, described the trading performance as in line with expectations, saying it reflected "the tougher trading environment we are experiencing in the aviation business".
He said Jet2.com had been successful in maintaining load factors, but in part at the expense of yields.
Jet2.com has continued to focus on core leisure routes from its bases in the North - Leeds/Bradford, Belfast, Blackpool, Edinburgh, Manchester and Newcastle, whilst increasing its services to Eastern Mediterranean destinations.
The company operates 31 aircraft of which 29 (21 Boeing 737-300s and 8 Boeing 757-200s) are owned by the group.
The company said its 235-seat Boeing 757-200s enabled it to serve popular Eastern Mediterranean, Red Sea and Canary Island destinations very cost effectively whilst still offering competitive economics to traditional Western Mediterranean resorts. It was also an ideal aircraft for its important passenger charter market.
The airline flew 2.2m scheduled passengers in the six months to September 30, 2009 (2008: 2.3m) with the total number of routes served from all bases rising to 94 (2008: 75).
Mr Meeson added: "We were able to increase load factors, partly at the expense of yields, by focusing on flying popular routes at departure times convenient to our customers."
He said ancillary revenues - driven by charges for meals and seat reservations - were continually being developed with gross revenue per passenger increasing to 20.70 during the half year (2008: 15.17).
But he conceded: "After a very strong performance in the previous year, our freight and passenger charter business experienced reduced revenues, reflecting a weaker market for charter services.
"In total, charter revenues were down 18 per cent in the first half."
Cost management remained a particular focus. A significant proportion of the airline's cost base was foreign currency-based and had suffered from the weakness of sterling.
For winter 2009/2010, the airline has reduced its overall scheduled capacity, which it said reflected a "prudent" approach in the current economic environment.
Overall, Jet2.com has planned a two per cent increase in scheduled seat capacity for Summer 2010, with a higher proportion of Eastern Mediterranean destinations.
The company said it continued to invest in the development of Jet2holidays.com, its ATOL-protected tour operator, which delivered
over 47,000 package holidays in the half year to September 2009, an 80 per cent increase over the same period last year.
Shareholders will receive an interim dividend of 0.36p per share.
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