MyTravel cuts losses but warns on trading
Saturday 29 May 2004
Mytravel, the holiday company struggling to manage its debts after a disastrous over-expansion plan, yesterday said its losses had narrowed, but said trading conditions in the UK market remained tough.
Peter McHugh, the chief executive of the company formerly known as Airtours, said margins were still under pressure at the group, particularly in the UK, where customers are still holding back on booking their holidays.
But after losses of £913m last year, the MyTravel said improvements were underway and it would return to profit in 2005. Losses for the six months to the end of March came in at £199m, compared with £617m in the same period last year, as bookings picked up in North America and northern Europe.
MyTravel's problems during the global downturn in tourism were exacerbated by its decision to increase capacity, choosing to buy aircraft, cruise ships and hotels in an attempt to take market share. But when demand plunged as economic uncertainty prevailed, MyTravel was left with high fixed costs and unsold holidays.
After refinancing about £1.3bn of debt and axing 2,000 jobs, cost-cutting is still paramount to the company. Mr McHugh said MyTravel would reduce the amount of guaranteed accommodation it books up in advance. It is also selling another of its aircraft this year. Four cruise ships are also being sold off as it plans to exit its cruise-line operations.
While there are signs of some improvement in the business, debts rose to £877m from £672.6m at 30 September. Its balance sheet is in need of further restructuring and the company reiterated its warning that this could result in a "very significant dilution of the interest of shareholders".
- 1 Games of Thrones actor Lena Headey makes emotional promise to her unborn daughter
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 3 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Female Muay Thai champion hustles coaches to give them a beating
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...