Jet2 parent company Dart Group is expecting to “exceed market profit expectations” for the full-year despite a dip in its leisure travel division’s operating profit margin for H1.
It has highlighted Brexit and other “headwinds” as factors in hindering its ability to give a clear outlook for the full-year.
Dart Group comprises Jet2.com and Jet2holidays, as well as logistics arm, Fowler Welch.
For the half year ended 30 September, group operating profit increased by 3% to £365 million (2018: £354.4 million) and group profit before foreign exchange revaluation and taxation increased by 3% to £349.8 million (2018: £340.2 million).
For the leisure travel division, while revenue growth was strong (17% up to £2,528.8 million), operating profit margin reduced to 14% (2018: 16%).
Operating profit for this division was £361.5 million, up from £351.4 million.
Dart Group put this down to “cost headwinds”: fuel; the weakness of sterling against the euro and US dollar; and real wage increases were not fully passed on to the customer.
Resultant operating profit increased 3% to £361.5 million.
The company said the “modest increase in overall group profitability” reflected a later customer booking pattern in its leisure travel business, with customer demand “strengthening throughout the summer season”.