Jet2 owner reports strong growth in annual profits of 49%

posted on 12th July 2018 by Justin Burns
Jet2 owner reports strong growth in annual profits of 49%

Leisure carrier Jet2’s owner the Dart Group has reported strong results in annual revenue and profit today fuelled by an increase in passenger numbers and package holidays.

For the year ending 31 March, 2018 the revenue grew by 38 per cent to £2.39 billion and pre-tax profits were up 49 per cent to £134.6 million.

Jet2.com flew a total of 10.38 million passengers, a 46 per cent rise on the 7.1 million in last financial year, as it expanding its network from regional airports in the UK. In summer 2017, the airline operated 75 aircraft (summer 2016: 64).

Average load factors, including from popular new operating bases at Birmingham and London Stansted airports, increased to 92.2 per cent (2017: 91.5 per cent).

The Dart Group also said some price investment was also made to support demand at the two new operating bases in their first seasons of operation.

Average airline ticket yields at £73.65 (2017: £86.65) were 15 per cent lower than the prior year against a 45 per cent increase in seat capacity and “very competitive pricing” in summer 2017.

As for the future, chairman Philip Meeson said: “Demand for our leisure travel product has strengthened since the start of the new financial year and given current forward bookings we expect that group profit before foreign exchange revaluations and taxation for the financial year ending 31 March 2019, will substantially exceed current market expectations.

“Looking further ahead, emerging cost pressures coupled with the overall uncertain UK economic outlook, particularly related to Brexit and how it may impact on consumer spending, means we remain unclear how demand will develop in the medium term.”

He added: “The group dedicates significant resources to deliver an innovative and industry leading product and together with our scale, experience, competitiveness and customer focused approach, we believe we have a strong and resilient leisure travel business.”