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Dart Group cautious on outlook given 'deepening Brexit uncertainty'
5th Sep 2019 09:49
(Sharecast News) - Airline holding company Dart Group said on Thursday that it was confident of meeting profit expectations for the full year but remains cautious on its outlook due to Brexit uncertainty.
In a statement ahead of its annual general meeting, the company said it remains optimistic that current market expectations for group profits before foreign exchange revaluations and taxation for the year ending 31 March 2020 will be met.
However, given cost pressures and Brexit-related uncertainties, executive chairman Philip Meeson said he was "very cautious" about the company's outlook.
Meeson said: "Given the cost pressures the travel industry is facing in general, which will intensify given the weakness in sterling, plus the deepening Brexit uncertainty and the impact this may have on consumer confidence, we remain very cautious in our outlook."
Meeson said that in the leisure travel business, the later booking trend seen at the time of its interim report had continued, with overall demand for both its flight-only offering and package holiday products continuing to strengthen. He said package holiday customer numbers as a proportion of total departing customers had increased during the summer.
Meanwhile, solid progress continued to be made at Fowler Welch, the AIM-listed group's distribution and logistics business.
However, the chair cautioned that winter season forward bookings had "yet to match" Dart's seat capacity growth, therefore pricing for both its leisure travel products would need to remain "continually enticing".
As of 1020 BST, Dart shares had lost 3.11% at 717p.
In a statement ahead of its annual general meeting, the company said it remains optimistic that current market expectations for group profits before foreign exchange revaluations and taxation for the year ending 31 March 2020 will be met.
However, given cost pressures and Brexit-related uncertainties, executive chairman Philip Meeson said he was "very cautious" about the company's outlook.
Meeson said: "Given the cost pressures the travel industry is facing in general, which will intensify given the weakness in sterling, plus the deepening Brexit uncertainty and the impact this may have on consumer confidence, we remain very cautious in our outlook."
Meeson said that in the leisure travel business, the later booking trend seen at the time of its interim report had continued, with overall demand for both its flight-only offering and package holiday products continuing to strengthen. He said package holiday customer numbers as a proportion of total departing customers had increased during the summer.
Meanwhile, solid progress continued to be made at Fowler Welch, the AIM-listed group's distribution and logistics business.
However, the chair cautioned that winter season forward bookings had "yet to match" Dart's seat capacity growth, therefore pricing for both its leisure travel products would need to remain "continually enticing".
As of 1020 BST, Dart shares had lost 3.11% at 717p.