They admit the Fowler Welch trucking op is struggling so I presume it's mainly coming from Jet2.
There is a lot of pressure on costs in the Chilled Dist chain BUT Innovate which was owned by the Icelandics who walked away went bust.
Tesco who have a significant proportion of their business with them went to Stobarts and basically told them to take over Innovate in the interim. It was a very low margin business but Tesco have been advised that rates across industry need to rise significantly as otherwise Innovate will be handed back and will go belly up as no one interested in it for its margins.
In the medium term its likely rates will go up and if Innovate can't be turned around then a loss of capacity could have a very positive impact on Fowler Welch pricing and its parent company. Economic slowdown may impact a bit but chilled retail sector is expanding. Medium to Long term it looks positive.
Since fuel strikes in 2000 the majority of contracts now have fuel escalators built in which are reliant on specific set prices and fuel costs should not be reason for a distribution company struggling unless they really messed it up.