(Alliance News) - Dart Group PLC on Thursday said its operations took a hit from travel restrictions imposed at the end of its most recent financial year, resulting in a double-digit fall in profit.
The leisure travel company reported a 10% reduction in pretax profit in the year to the end of March to GBP153.2 million compared to GBP170.6 million a year ago, as net operating expenses jumped by 19% to GBP3.29 billion from GBP2.76 billion.
Dart Group recorded a net exceptional charge of GBP108.4 million, it said, due to hedge ineffectiveness as a direct result of Covid-19.
Revenue, meanwhile, increased by 21% to GBP3.58 billion from GBP2.96 billion year-on-year.
Dart Group said its performance for the financial year reflects the growing success of its leisure travel products - package holidays with Jet2holidays, and holiday flights with Jet2.com - which has led to continuing strong customer demand for both.
Despite the fact that Jet2.com had to suspend its flying programme in mid-March due to the travel restrictions imposed by governments across Europe as a result of the spread of Covid-19, the leisure travel business still achieved overall single sector flown passenger growth of 14% to 14.6 million versus 12.8 million a year prior.
Demand for Real Package Holidays continued to grow, Dart Group said, as Jet2holidays took 3.8 million clients - versus 3.2 million a year ago - on package holidays, an increase of 19%, with flight-only product booked by 7.1 million passengers - versus 6.5 million a year earlier - a growth of 9%.
Going forward, Dart Group said it still faces challenges as a result of the Covid-19 pandemic and therefore maintaining a healthy cash position remains its "top priority".
AIM-listed Dart Group shares were trading 3.5% lower in London on Thursday at 737.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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