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Dart Group expands fleet with Boeing deal

Published: 12:05 03 Sep 2015 BST

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Dart Group operates the Jet2.com airline

Dart Group (LON:DTG) announced plans to increase the size of its fleet by more than half after signing a deal with US plane maker Boeing.

The leisure airline and package holiday company, whose airline is known as Jet2.com, is to buy 27 new Boeing 737-800NG planes “to give it the long-term capacity to grow,” according to broker Canaccord Genuity.

The planes, which will be delivered over the next three years, are worth US$2.6bn, but the company said it had negotiated a “significant discount.”

Dart owned 44 planes at the end of last year, with 11 more on lease. The additional planes will take its fleet of owned aircraft to 71.

Chief executive Philip Meeson also gave a bullish outlook for the rest of the year.

Meeson said the company expects to “materially exceed” market expectations.

Dart reported a good start to the financial year, with a strong summer of trading in its leisure travel business.

It has benefited from higher ticket prices and load factors, despite slightly lower seat capacity than last year, helped by the continuing shift towards package holidays.

Fowler Welch, the group’s distribution & logistics business, is also trading ahead of last year.

Shares have already doubled in the last year but were on the way higher again today, gaining 10.5% to 488p.

Broker Canaccord boosted its target price on the stock to 600p.

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