THE PARENT of Leeds-based low cost flight operator Jet.2com today reported a 97 per cent leap in pre-tax profits for the half year ended September 30.
Dart Group's figure of £36.3m (2007: £18.4m) was achieved on turnover up eight per cent at £272.8m (2007: £252.9m).
Underlying pre-tax profits climbed by 175 per cent to £33.5m (2007: £12.2m).
The company said that over the period average load factors on its aircraft increased to 80.4 per cent (2007:74 per cent) and added that it had generated £20.3m cash from operating activities (2007: £0.5m outflow) despite the seasonal reduction in the level of customer advance payments, which peaked in March.
The company said the significant improvement in trading performance was principally driven by Jet2.com and reflected both improved yields and load factor.
However, the company will not pay an interim dividend because of the need, it said, to maintain "a cautious approach in recognition of current economic conditions".
Looking forward, Dart Group chairman, Philip Meeson said: "On an underlying basis, we would expect second half trading to be in line with last year.
"Jet2.com forward booking levels remain encouraging for the winter and Fowler Welch-Coolchain (the group's road distribution arm) continues to perform in line with the board's expectations.
Challenging
"We expect a more challenging trading environment next year and will continue to manage the business cautiously in the light of current economic conditions."
The company said costs were carefully managed in the period and a recently introduced fuel efficiency programme was now achieving a four per cent improvement in fuel utilisation.
For the winter season, Jet2.com has managed down its overall scheduled capacity which the company said reflected a "prudent" approach in the current economic environment.
New destinations, including Croatia, Turkey and the Red Sea, have been added for next summer, with increased flying from Manchester, whilst overall capacity will be maintained at levels similar to those of summer 2008.
The airline flew 2.3m scheduled passengers in the six months to September 30 (2007: 2.6m) with the number of routes served being reduced slightly to 74 (2007: 77).
The company said it was able to increase both yields and load factors by focusing on flying popular routes, at departure times convenient to customers.
Jet2.com currently operates 30 aircraft of which 29 (21 Boeing 737-300s and eight Boeing 757-200s) are owned by the group.
Jet2holidays.com, the group's tour operator launched in February 2007, sold over 25,000 holidays in the half year to September 2008.
The group said it was expected to make an increasingly significant contribution to the airline's passenger numbers over the coming years.
"We believe that Jet2holidays.com will become a favoured choice for our leisure customers by meeting our customers' demand for a package holiday from their local airport on Jet2.com scheduled services," today's statement said