Profits warning for Jet2 owner Dart Group
23.11.07
Dart Group, the owner of Leeds Bradford Airport based budget airline Jet2, announced a fall in first-half adjusted pretax profit and warned its underlying profitability for the year will be 'significantly reduced' from last year. Its shares dropped almost 20% on the news.
For the first half, the company's pretax profit before Specific IAS 39 mark to market adjustments declined by 39% to £12.2m from a restated £20.1m last year due to expansion at its budget airline Jet2. Pretax profit rose to £18.4m from £16m a year ago, while turnover increased to £252.9m from £198.8m.
Jet2's profitability was reduced due to its emphasis on growth rather than margin in its scheduled operations. Its capacity grew by 59% for the 2007 summer season and passenger numbers increased to 2.6m in the 6 months to September 30, from 1.7m a year earlier. Performance at the group's logistics company, Fowler Welch-Coolchain, improved. Turnover increased by 11% at margins which were slightly behind the same period last year.
The aviation and distribution company also revised its projected second-half performance on an underlying basis. It now expects this to be in line with last year, because of a combination of winter revenues being lower than previously anticipated and an increase in aircraft maintenance costs. Shares in aviation company slumped 17.6% on the news.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book leeds bradford airport hotels or leeds bradford airport parking at the lowest price, click on these links to two great leeds bradford airport parking and leeds bradford airport hotels price comparison pages.
