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Jet2holidays growth powers profit rise at parent Dart

Growth at Jet2holidays helped boost half-year profits at parent company Dart Group by 37% to more than £78 million.


The company cautioned that winter losses are expected to increase materially as its leisure travel operations become increasingly seasonal due to ongoing growth.


Package holidays achieved 110% growth in revenues to £380.1 million in the six months to September 30 with carryings up by 103% to 634,866.


Budget carrier Jet2.com saw revenue growth of 19% to £463.2 million, reflecting a 13% increase in passengers carried and increases in ticket yields and non-ticket retail revenues.


The airline operated 53 aircraft this summer from its eight northern bases – Belfast, Blackpool, East Midlands, Edinburgh, Glasgow, Leeds Bradford, Manchester and Newcastle airports.


Jet2.com has increased its scheduled capacity this winter by 23%, while reducing charter activity in the process, with growth provided by additional scheduled flights to Mediterranean and Canary island destinations.


Capacity for summer 2014 is to grow by a further 14% following a 12% rise this year with additional services supporting the growth of both Jet2.com and Jet2holidays.


In total 26 new services are planned, including the new destinations of Fuerteventura, Verona and Vienna.


Group chairman Philip Meeson said: “Our customers continue to demand great value but are not willing to reduce quality.


“Therefore, our holidays are ideally suited to the current difficult economic environment as we offer packages encompassing flights, transfers and accommodation ranging from budget self-catering, to five star luxury hotels, with all inclusive and three and four star packages being particularly popular.


“Our leisure travel operations continue to concentrate on the Mediterranean, the Canary Islands and European leisure cities, which means that the business is becoming increasingly seasonal as it continues to grow and, as a result, increased losses are to be expected in the second half of the year.


He added: “With the important winter booking period still to come, the board remains cautiously optimistic in relation to profit growth for the financial year ending 31, March 2014.”

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