Dart profits jump 32% on 'growing success' of leisure travel products division
Source - SMW
Leisure Travel and Distribution & Logistics group Dart said annual profits increased by more than a third amid the growing success of its Leisure Travel products. But the company said it may have to cut the prices of its flight-only and holiday packages to entice customers.
For the year ended 31 March 2019, profit before taxation improved by 36% to £177.5m and revenue increased by 32% to £3,143.1m
The result included a £2.6m loss on foreign exchange revaluations, compared with a gain of £20.0m last year.
'Our performance reflects the growing success of our Leisure Travel products - holiday flights with our award-winning airline Jet2.com and package holidays with our acclaimed tour operator Jet2holidays - which has led to continuing strong customer demand for both,' the company said.
During the year, Jet2.com flew a total of 12.82m flight-only and package holiday passengers, up from 10.38m last year. Its flight-only product saw growth of 21% to 6.49m passengers, while demand for its real package holidays continued to grow, as Jet2holidays took 3.17m customers on package holidays, up 27% from 2.50m.
The company said it remained 'optimistic' that current market expectations for the group profit before foreign exchange revaluations and taxation for the year ending 31 March 2020 would be met, but warned of signs of slowing demand.
'Though overall demand for our leisure travel products has continued to strengthen since the start of the new financial year, it is clear from our forward booking trends that generally, less confident consumers are booking later than last year and therefore pricing for both our flight-only and package holiday products has to be continually enticing,' the company said.
At 8:09am: (LON:DTG) Dart Group PLC share price was +17.25p at 859.25p