Dart Group half year revenue up 34% to £1.6bn

Shares of Leeds-based leisure and logistics firm Dart Group, owner of Jet2.com and Jet2holidays, rose 8% after it said it is optimistic it will exceed market expectations of full-year profit.

Dart Group said profit before tax rose 30% to £212.5 million on revenue up 34% to £1.66 billion in the half year ended September 30.

“Leisure travel customer volumes were strong during summer 2017 and since the half year end, we have seen a further strengthening of customer demand, particularly for our flight-only product,” said Dart Executive Chairman Philip Meeson.

“This has resulted in future leisure travel bookings for this financial year performing ahead of expectations. 

“As a result, the board is optimistic that market expectations of group profit before foreign exchange revaluation and tax for the year ending 31 March 2018 will be materially exceeded.

“Looking further ahead, whether this strength in demand will remain in the medium term is unclear 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. 

“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.”