Aim 100 

The Aim 100 2019: 10 to 1

The Aim 100 2019: 10 to 1

10. Dart

The European airline sector is a crowded market. Overcapacity has seen airlines such as Monarch and Flybe go under. This doesn’t appear to be deterring Jet2holiday owner Dart (DTG) from its expansion plans. During the first half of its financial year Dart increased capacity nearly a quarter to 9.47m available seats, and carried a quarter more passengers at 8.93m. So far this has not yet hit the load factor, which rose 1.2 percentage points so that 94.4 per cent of seats were filled.

But “increased losses” are expected in the second half of the year as Dart ups its spending on new planes and marketing campaigns, and adds staff. It’s also exposed to fluctuations in fuel prices and sentiment around Brexit. There’s been speculation that some Brits are putting off booking a summer holiday given the uncertainty around Brexit and ensuing flying and visa rules. This may put pressure on ticket yields, which, coupled with excess capacity, could be disastrous. At 961p or 10 times forward earnings, sell. JF

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now