THERE was finally some relief for airline and tour operators today after Jet2 owner Dart Group said it was “simply untrue” that Brits had stopped holidaying abroad.
Jet2 is one of Britain’s largest tour operators and the third biggest airline behind EasyJet and British Airways — and regarded by analysts as a bellwether for the industry.
Last year Jet2.com flew a total of 12.8 million passengers, up from 10.4 million in 2017 and took 3.2 million people on package holidays compared with 2.5 million the year before.
That helped the firm clock up a 32% increase in revenues to £3.1 billion and a 36% rise in profits to £177.5 million.
Dart says the figures show the industry is still growing, adding that people still want to go on their holidays despite the looming threat of Brexit.
Executive chairman Philip Meeson said: “We know that taking a holiday is one of the most important family experiences of the year.”
Shares were up 3% or 26p at 868p. Dart’s results had a knock-on effect on rival Thomas Cook which added 10% or 1.2p at 13.2p, while British Airways owner IAG climbed 5p at 451p.
It was a positive session for the FTSE 100 too — it was up 22.45 points at 7553.14 — as the blue chip index rebounded from a four-day losing streak.
But the most notable risers were on the FTSE 250 where engineering company Meggitt and defence contractor Cobham led the charge.
Cobham was upgraded by scribblers at Barclays — it added 4.3p at 117p — while Goldmans Sachs turned heads by raising its rating on struggling Meggitt to a “buy”. Goldman believes the firm will deliver growth ahead of guidance driven and its stock gained 18.2p at 546p.
Tonic maker Fever-Tree was also on the charge after analysts at Shore Capital gave it the thumbs-up.
There have been doubts about its ability to grow in the US, but Shore believes that despite minor hiccups Fever-Tree can be a big hit on the other side of the Atlantic. Its shares were up 21p at 2209p.
However furniture maker DFS was on the slide after it warned future profits could suffer from an uncertain economic outlook, denting shoppers’ appetite for new furniture. The retailer also appointed a new chief financial officer in Mike Schmidt. Shares were down 3p at 234p.
Small-cap spotlight
Traders had a a laugh at Neil Woodford’s expense after Benchmark Holdings announced a breakthrough in increasing resistance to a common infection in tilapia fish. The genetics firm had been backed by Woodford but last week he cut his stake to 2%. Benchmark shares were up 3% or 1.5p at 52p.
