Long haul sparks First Choice growth
First Choice has reported a strong performance across its businesses with long haul and specialist divisions playing an increasingly important role.
In a trading statement, the operator said summer sales in mainstream holidays increased 13%, fuelled by an 18% growth in long haul travel and 16% in medium haul. Short haul, which now represents less than 30% of its mainstream revenues, climbed 6%.
Margins were also up, First Choice said, adding it was in line for “double digit” earnings growth in line with expectations.
Revenues of speciailst holidays jumped 13% with passenger numbers up 14% while sales of activity holidays grew 4%.
“Trading across Europe has been particularly pleasing in light of certain of key destinations being impacted by the Egypt bombings, tsunami and hurricanes in the Caribbean,” the statement said.
In winter, capacity in mainstream holidays has been reduced by 6%, in line with the operator’s policy of “not to chase volume at unprofitable margins.”
Medium haul and short haul revenues have tumbled 17% and 13% respectively with passenger numbers down 23% and 20%. Sales of long haul holidays have climbed 39% and passenger numbers by 26%.
For summer 2006, bookings are down although revenues and margins are up, the operator said.
First Choice chief executive Peter Long said: “We are pleased with the way the current summer season has gone across all our buisnesses. We anticipated that consumer demand for flight-only and generic three star winter holidays would be weaker and we have adjusted capacity accordingly.”
He said it was on course for double-digit earnings growth in the year ending October 31 while progress was being made to achieve its target of hitting a 5% operating margin.
Report by Steve Jones
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