p14 City Apr24 22/4/09 20:05 Page 14
City & finance
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Page & Moy’s
Jet2 profits tipped
Atol bond lifted
THE CAA has lifted bonding requirements for to beat forecast
Page & Moy, following parent company Kaleido-
scope Travel Group’s financial restructuring.
Chris Gray.
mainland Spain and the Balearics were also
The firm, which also operates the Just You THE OWNERS of no-frills airline Jet2.com have slightly up on last year.
singles brand that has recently started working predicted it will deliver full-year profits ahead of Shares in the Dart Group plc, which owns Jet2,
through agents, had the requirement lifted as expectations, as it reported a year-on-year rise rose 28% after it released its forecast in a
part of the latest Atol renewals. in the proportion of seats sold. pre-close trading update.
Kaleidoscope, which also owns Travelsphere, Leeds-based Jet2, which mostly serves pack- Full results for the year to the end of March
restructured its finances in December 2008. age holiday destinations from northern airports, 2009 are due in July. Andrew Fitchie, an analyst
This is the first time it has had its Atol bond has benefited from a rise in charter seat demand at Collins Stewart, said the capacity cuts and
requirement lifted. following the collapse of XL last year. changes to the network had paid off.
William Burton, group chief executive, said: Other contributing factors include a cut in “Jet2 is one of a small number of airlines
“This is a welcome vote of confidence by the CAA Jet2’s capacity and a shift in its network to focus that has traded consistently profitably over
in the company’s strong balance sheet following more on the eastern Mediterranean, Turkey, the recent years. The outlook for the sector remains
our recent financial restructure, and in the Canaries and Sharm el Sheikh. uncertain, however Jet2’s bookings remain
management’s robust actions tackling the impact Overall summer load factors currently stand strong,” he said.
of the credit crunch.” at 38% for the year to date. A total of 1.2 million Chris Arden, an analyst at Arden Partners,
From April 1 last year the CAA lifted blanket seats have been sold for this summer. said the forecast suggested Jet2’s strategy of
bonding requirement but retained the right to The airline said the 38% figure was offering seat-only and packages with its sister
demand bonds from firms less than four years “marginally higher” than at the same point last company Jet2holidays as well as charters with
old or in foreign ownership. year, which ended up with a final summer load other tour operators was working well.
It also kept the right to bond companies it felt factor of 80%. Chief executive Philip Meeson said: “People
were financially weak and might pose a threat to Longer-distance destinations such as the are still looking for great value leisure products.
the Air Travel Trust Fund that backs Atol. Canary Islands, Dalaman and Sharm el Sheikh “This past year we have seen excellent growth
were doing best, with 50% of seats sold already. into new destinations, while our most popular
But load factors to core destinations in routes are still at the core of our service.”
Tui’s £880m loan
could be quashed
TUI TRAVEL could lose its European interests
in an alternative deal to a full takeover by its
German parent.
Hanover-based Tui AG currently owns 51% of
the UK company and had been preparing a full
buyout following the sale of its Hapag-Lloyd
container shipping division.
However, that sale had not generated the
revenues hoped for after the company sold a
smaller stake than originally planned.
Tui Travel’s share price has also seen consid-
erable rises in recent weeks, increasing its value.
Reports this week suggest an alternative plan
to reorganise Tui’s European operations is being
considered. DOVER SEEKS £400M INVESTMENT: The Port of Dover is considering seeking
The plan involves the UK brand losing its private investment to fund a new ferry terminal at its Western Docks, where hovercraft
European operations in exchange for the cancel- services formerly operated. If it cannot raise investment, the port indicated it might be
lation of an £880 million loan from its parent. able to fund the £400m terminal through debt.
14 24.04.2009
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