Jet2 profit up; cautious on growth
01.08.09
A strong performance by Jet2 saw pre-tax profits to treble at its owners, the Dart Group. But the budget airline's chief executive, Philip Meeson, said in the current economic climate, the airline was taking a cautious approach to growth.
In the year to March 31 2009, Dart Group’s pre-tax profits trebled from £11.8m to £33.5m, with earnings per share rising to 19.3p from 6.2p. Shareholders will benefit from the reintroduction of a dividend payment - set at 0.71p a share.
Jet2, based at Leeds Bradford Airport, expanded leisure routes to sunshine destinations, mainly from Leeds and Manchester, during the year. However the economic downturn forced the airline to reduce the number of seats on summer 2008 routes by 21% and by nearly half on winter services. It reduced the frequency of flights to the western Mediterranean and axed routes to a number of city destinations, which helped cut costs.
Mr Meeson said focusing on leisure routes and tailoring seat capacity to demand significantly boosted Jet2’s performance, with total aviation revenues growing by 6% despite of an overall 28% reduction in seat capacity. Passenger charter operations had a strong year due to both increased demand and additional aircraft availability. The group’s freight operations, particularly night flights for Royal Mail, also continued to deliver significant revenues.
Mr Meeson added that the intention was to grow the airline both organically and through suitable acquisitions. He said: ‘Jet2 will continue to focus its growth in the leisure flights sector. In the current trading environment, the key to success will continue to be focusing on matching flight schedules and frequencies to demand. We are well placed to deliver satisfactory financial performance in this financial year in difficult trading conditions.’
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