Dart Group PLC (LON:DTG), the owner of the Jet2 airline, warned that it expects increased losses in the second half and that it remains “unclear how demand will develop in the medium term” amid Brexit uncertainty.
The company, which also owns the Jet2holidays travel business and the Fowler Welch distribution and logistics firm, said the expected wider losses in the second half reflect investments in 15 extra aircraft and marketing as well as higher staff costs.
“Looking ahead, significant cost pressures such as fuel and other operating charges, plus the necessary continued investment in our products and operations including that required to retain and attract colleagues, are emerging headwinds,” the group said.
“This, coupled with the overall uncertain UK economic outlook particularly related to Brexit and how it may impact on consumer spending, means we remain unclear how demand will develop in the medium term.”
READ: Dart Group is up, up and away after strong start to the new fiscal year
The warning was issued in the group's first-half results, which showed a 56% jump in pre-tax profit to £337.4mln and a 36% rise in revenue to £2.25bn.
Revenues were boosted by a strong summer season for its higher-margin holiday package business and good demand for its airline.
The airline saw a 25% increase in passenger numbers to 8.93m and a 17% gain in average tickets prices to £88.02, while the average price of package holidays increased 7% to £689.
Overall leisure travel revenue grew by 38% to £2.16bn.
The distribution and logistics business saw revenues increase 7% to £88.9mln as new business was secured.
The group raised its interim dividend by 87% to 2.8p.
Shares in Dart Group fell 9.6% to 88p in morning trading.