LONDON (ShareCast) - Airline operator Dart Group has warned of a £17m one-off charge this year after it failed in a court appeal relating to an "unexpected technical defect" that delayed a flight run by its Jet2.com arm.
Dart said it would make the provision in this year's accounts to cover potential historical claims arising from the Supreme Court's decision to reject its challenge of an earlier decision in June.
The case related to a customer demand for compensation related to a delayed flight in October 2011.
Dart unsuccessfully contended that the technical defect that allegedly caused the delay was deemed exceptional under legislation forcing airlines to compensate customers for delays.
It said the legislation may cost the group a further £3m to £5m a year.
Dart said in a statement: "The board is currently further reviewing its options to mitigate the future financial impact on its air travel operations."
It added: "Safety has always been Jet2.com's first priority. Aircraft have duplicate and triplicate systems to ensure that flights may continue to their destination safely. However, certain technical issues can prevent or delay departures. For these the company has back-up and contingency plans to minimise inconvenience to customers."
Shares in Dart fell 34.5p or 13.2% to 226.5p at 11:25 in London.
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