Jet2 parent reports strong trading in ‘challenging’ season
Jet2holidays and Jet2.com have reported a strong first half in a ‘challenging season in terms of pricing’.
Parent Dart Group reported group operating profit up by 22% to £204.9 million and group profit before foreign exchange revaluation and tax by 18% to £198.2 million.
But it said it expects increased losses in the second half of the year as it continues to invest in additional aircraft, advertising and people in preparation for further expansion in its flight networks at all its operating bases in summer 2018.
Leisure travel revenue grew 36% to £1,580.9 million, reflecting a 41% increase in passenger sectors flown by Jet2.com to 7.14 millon.
This included a 41% increase in the number of Jet2holidays package holiday customers to 1.81 million, representing 51% of overall flown customers.
However, airline ticket yield per passenger was £75.95, 17% down on the previous year.
Overall load factor remained in line with last year at 93.2% and included the first season of operation from two new bases at London Stansted and Birmingham airports.
"It is particularly pleasing to report that the new bases are already proving popular, with 57% of the total year-on-year passenger sector growth of 2.07 million resulting from them," said the group today.
"Encouragingly, close to 50% of those passengers have chosen Real Package Holidays with Jet2holidays. Since the half year end, we have seen a further strengthening of customer demand, particularly for our flight-only product. This has resulted in future leisure travel bookings for this financial year performing ahead of expectations."
But it said looking further ahead, it is unclear whether this strength in demand will remain in the medium term and will depend on the ‘evolving competitive environment’.
"Pleasingly, we have been encouraged by the performance of our two new operating bases and are committing additional aircraft to continue our growth at these and at our other bases for summer 2018," said Dart Group.
"However, we are seeing the emergence of certain cost pressures as we continue to invest in our airport operations, colleagues and other related areas.
"Nevertheless, and despite the current uncertainty around the ‘Brexit negotiations, we remain confident in the resilience of our leisure travel business, supported by our recent elevation to the UK’s second largest package holiday operator."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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