UK regional carrier Jet2 has posted a 10% decline in annual profits to £21.7 million ($34.1 million) for the full year to 31 March, blaming higher fuel costs for undermining steady growth in the airline's capacity and load factor.
Turnover at the Leeds Bradford airport-based carrier increased by 18% to £416 million, reflecting a 27% growth in scheduled passenger numbers to 4.3 million.
Load factor inched up 2 percentage points to 87% even as the carrier raised capacity by 23%. Ticket revenue per passenger dipped slightly to £51.47, while retail revenue per passenger including ancillary services rose by 8% to £27.86.
However, margins were squeezed by a 24% per tonne increase in aviation fuel which Jet2 was "unable to pass on to our customers", and which was exacerbated by higher volumes on capacity growth.
Despite the burden of higher oil prices, the airline credits its operational efficiency programme with reducing carbon emissions by 34,000t over the course of 2011/12. Lower fuel burn was aided by the leasing of two modern Boeing 737-800s.
Five Boeing 737-300s were also acquired during the financial year, while three 737-300s were returned to their lessors. Jet2's total fleet size now stands at 42 aircraft.
Across the Jet2 group - which also includes package holiday arm Jet2holidays, and distribution and logistics business Fowler Welch - turnover grew by 26% to £683 million, while profit before tax grew by 7% to £28.1 million.
Source: FlightGlobal.com
