Highlight

• Turnover up 8% to £272.8 million (2007: £252.9m)
• Pre-tax profits up 97% to £36.3m (2007: £18.4m)
• Underlying pre-tax profits up 175% to £33.5m (2007: £12.2m)
• Aviation load factors increased to 80.4% (2007:74.0%)
• £20.3m cash generated from operating activities (2007: £0.5m outflow)

Chairman's Statement

I am pleased to report on the Group's trading for the six months ended 30 September 2008. The Group delivered a profit before tax of £36.3m, an increase of 97% on last year (2007: £18.4m). On an underlying basis (excluding the Specific IAS39 mark to market adjustments), profit before tax amounted to £33.5m (2007: £12.2m). This significant improvement in trading performance was principally driven by Jet2.com, the Group's low-cost leisure airline, and reflects both improved yields and load factor.

Underlying EBITDA increased by 77% to £52.7m (2007: £29.9m).

Net cash flow from operating activities of £20.3m was generated in the period (2007: £0.5m outflow), despite the seasonal reduction in the level of customer advance payments, which peaked in March. Capital expenditure in the first half amounted to £9.5m (2007: £16.0m) primarily relating to the overhaul of the Group's aircraft engines.

Notwithstanding these strong results, the Board has decided, after careful consideration, not to pay an interim dividend, maintaining a cautious approach in recognition of current economic conditions.