LEISURE group boss Philip Meeson has warned of increasing losses in the second half-year due to investment in new aircraft, advertising and recruitment costs in readiness for the 2015 season.

The chairman of Dart Group, which owns Yeadon-based leisure airline Jet2 and package holiday operator Jet2 Holidays, says the investment will follow a half-year in which its sales bounced back from a slower than expected start to the summer holiday season in the six months to September 30.

Revenues at the group, which also includes distribution company Fowler Welch, increased by 15 per cent to £902.2 million, with underlying operating profit rising by ten per cent to £89.4 million, underpinned by continued growth in the leisure travel business.

As a result of a recent Supreme Court ruling over delayed flights, Dart has made an exceptional provision of £17 million in case of possible passenger compensation claims.

This reduced pre-tax profit by eight per cent to £71.7 million.