Dart Group Expects Fiscal Year Results to be Ahead of Market Views

LONDON--Dart Group PLC (DTG.LN), the owner of budget airliner Jet2.com, said Thursday that it now anticipates performance for the fiscal 2016 to be materially ahead of current market forecasts due to strong trading by its leisure travel business.

"Demand for our package holiday products continues to grow and as a result the number of package holiday customers as a proportion of overall flown customer numbers has increased. The business has also achieved higher airline ticket yields and load factors than in summer 2014," Chairman and Chief Executive Officer Philip Meeson said.

"Early indications for winter 15/16 leisure travel bookings are satisfactory," Mr. Meeson added.

Dart said that it has entered into an agreement to purchase 27 new Boeing 737-800NG aircraft to meet future demand and for planned fleet replacement. The aircraft will be delivered between September 2016 and April 2018.

The total value of the aircraft purchase, at current list prices, is $2.6 billion, though Dart has secured discounts from the list price. The purchase is expected to be funded through a combination of internal resources and debt.

Dart also said that its logistics business, Fowler Welch, is also currently trading ahead of last year.

Write to Tapan Panchal at [e-mail]

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September 03, 2015 02:44 ET (06:44 GMT)

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