21st Nov 2019 09:55
(Alliance News) - Shares in Jet2 airline-owner Dart Group PLC's shares jumped Thursday as the company guided to "significantly" beat market expectations for profit.
Shares were 5.8% higher in morning trade at a price of 1,428.80 pence each.
Dart, which also has distribution and logistics operations, said Leisure Travel bookings continue to strengthen, not including the post-Christmas booking period. As a result, it will easily top market expectations for group profit before tax and current movements in the financial year ending March.
Looking at interims, pretax profit was 2% higher at GBP339.7 million for the six months to September 30, with the figure excluding foreign exchange 3% higher at GBP349.8 million.
Leeds-based Dart's revenue increased by 16% on a year before to GBP2.62 billion.
Jet2 operated 325 routes during the half-year, 7% more than a year before, helped by numbers of flight-only passengers rising 8% to 4.75 million. Package holiday customer numbers were up 17% to 2.71 million.
Dart said the "modest" increase in interim profit was due to a later customer booking pattern in leisure travel. It also said profit in the Distribution & Logistics arm grew 23% to GBP2.7 million, "pleasingly".
Dart does expect losses in its seasonally quieter second half, as usual, as it invests in more aircraft and infrastructure ahead of the summer of 2020.
The company is paying an interim dividend of 3.0 pence per share for the half, up 7.1% from 2.8p a year before.
"Looking further ahead, whether the currently encouraging consumer demand for our products remains buoyant in the medium term is unclear as we believe much will depend on the UK government securing a pragmatic and balanced Brexit agreement with the EU," said Executive Chair Philip Meeson.
"In addition, the travel industry in general continues to be subject to a range of cost pressures in relation to fuel, foreign exchange, carbon and other operating charges. These, together with the necessary continued investment in our own products and operations, including that required to attract and retain colleagues, are headwinds that our Leisure Travel business faces."
By George Collard; [email protected]
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