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 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 5 Medina: Saudis take a bulldozer to Islam's history
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...