MyTravel will not recover losses this summer
MyTravel says bookings for summer 2003 have been affected by the company’s poor public image as well as difficult trading conditions.
The group has reported a 5% drop in global summer bookings year-on-year. However, this is alongside a 12% capacity reduction, leaving the operator with 420,000 fewer holidays to sell.
MyTravel chief executive, Peter McHugh was cautious about the results. He said: “The recent booking trend is generally encouraging, however we cannot yet predict whether this trend will continue or how the peak summer period will unfold.
“If current trends do continue, then I expect the summer performance to be better than last year. However, we do not expect to fully recover the operating losses suffered in the first half.
The operating loss for the six months to 31 March was £282.7 million, up by £132.5 million year-on-year.
The Group is blaming £19.2 million of this loss on a change in accounting methods in November 2002. Following a review of MyTravel, auditors insisted that a number of costs be taken in the first half of the financial year which would previously have been recorded in the second half.
In a statement MyTravel said: “The whole industry has suffered from a series of external factors which have caused customers to be cautious. Moreover, uncertainty about the Group’s financial position has undoubtedly also affected our trading.”
Mr McHugh said the group has reached an agreement with banks to extend its banking facility until May 2006, in which time the company should be able to “turn around”.
Read our previous story:
09-Jun-03 MyTravel ‘in crisis talks’
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