WestJet Visit Canada

Published on Thursday, July 12, 2018

Jet2 parent reports jump in profit

Jet2 and Jet2holidays' profit for this financial year will 'substantially exceed current market expectations', according to the executive chairman of its parent Dart Group.

Announcing a 49% jump in pre-tax profit to £134.6 million for the year to March 31 2018, Philip Meeson said demand for Jet2's leisure travel product has strengthened further since the start of the new financial year.

But he warned that looking further ahead 'emerging cost pressures' and the 'overall uncertain UK economic outlook, particularly related to Brexit and how it may impact on consumer spending' means the group remains unclear how demand will develop in the medium term.

Meeson said Jet2's flight-only product was enjoyed by 5.37 million passengers in the financial year to March 31 2018, up 48% on the previous year.

Jet2holidays took 2.5 million customers on package holidays, up 45% year-on-year.

Average load factors, including from new operating bases at Birmingham and London Stansted airports, increased to 92.2% from 91.5% in 2017.

But average airline ticket yields were £73.65, 15% lower than the prior year against a 45% increase in seat capacity and 'very competitive pricing' in summer 2017.

"Some price investment was also made to support demand at the two new operating bases in their first seasons of operation," said Meeson.

However, the average price of a Jet2holidays package holiday grew by 3% to £633, helping to push up revenue in its leisure travel business by 42% to £2,223.2 million.

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