The group saw pre-tax profits fall 14% to £90.1 million in the year to March 31. This compares to £104.2 million in 2015/16. The figure includes Dart’s distribution and logistics business; however separate results are given for its leisure travel division, which made £85.6 million before tax, down 13%.
Dart Group executive chairman Philip Meeson said “considerable investment” at Jet2’s new bases Stansted and Birmingham with a combined 58 new routes; plus a £10.9 million charge for foreign exchange revaluation had accounted for the result.
The year saw growth of 42% in Jet2holidays, the package business arm, with a leap in passenger numbers from 1.22 million to 1.73 million. They paid an average £617, an increase of just £1 on the previous year. These passengers represented 49% of passengers on Jet2.com, compared with only 40% last year. Jet2holidays sold 41% of its packages as all-inclusives.
“The increased mix of package holiday customers is particularly pleasing, as the longer duration, end- to-end holiday experience allows greater value to be added through product innovation and service at each point in the customer’s journey,” the company said.
It added that packages created “brand loyalty and retention and a better quality of recurring revenue and profitability, compared to the more impulsive, price sensitive, shorter duration, flight-only product”.
The airline flew 7.1 million people, an increase of more than a million, with 3.63 million being flight only, the same as last year. Average airfares were £86.65, a fall from last year’s £91.11. Load factors dropped one percentage point to 91.5%.
Dart Group used its results to announce a staff profit sharing scheme for those continuously employed for the last 12 months. Employees will receive 5% of pre-tax profits, with first payments in July 2019.
