Highlights from the Dart Group results released today which may serve to prove and disprove some of the rumours mentioned above
***
Profit before tax after goodwill amortisation and exceptional items amounted to £15.0m (2005 - £8.4m).
In excess of 80% of the 2006/07 Jet2 fuel requirements have been hedged at average rates lower than the current market price. A small amount of fuel has been hedged in respect of the 2007/08 requirement.
Jet2 currently operates 22 Boeing 737-300 aircraft, which carry 148passengers, and three larger Boeing 757-200s, which carry 235 passengers. The Boeing 757 enables us to fly more passengers at a lower seat cost on our more popular routes and also to fly to more distant winter sun destinations. We expect to increase both fleets over the coming year.
With the growing propensity for people to own overseas properties, take more frequent holidays and leisure breaks in exciting and attractive European cities and probably to retire to sunnier climes, we believe that there is huge potential growth in the leisure air travel market. Jet2 is now one of the most recognised air travel brands in the North of England and we are well positioned to successfully grow this business.
During the year to 31 March, 2006, the Group increased its owned aircraft fleet to 21 Boeing 737-300 aircraft, which carry 148 passengers, and three Boeing757-200s, which carry 235 passengers. Since the year end two further Boeing757-200s have been purchased. Of the Boeing 737-300s, six are 'Quick Change' versions, allowing the seats to be removed and containers of mail to be loaded within 40 minutes, for Royal Mail's 'Postal Air Network'.
We will continue to grow both our fleets. We believe that the Boeing 737-300 has excellent economics for short distance flights, whilst the Boeing 757-200 gives competitive seat rates for longer distances and will allow the company a wider offering of winter sun destinations. This aircraft's economics are competitive and its excellent performance characteristics enable operations to a wide variety of regional airports.
***
City reaction to the results has been positive, with shares (@ 13:56) up around 10%.
682