MyTravel cuts winter losses


Package holiday provider MyTravel has released interim results for the winter period showing an operating loss before tax of £70.3 million.

The results, though adding to the £1.22 billion loss over its last four fiscal years, are an improvement on last year's winter results, which recorded a comparable loss of £119.5 million.

Despite sustained high oil prices which have impacted negatively on travel companies' profits, MyTravel says its seasonal loss had reduced from £21.3 million to £75.8 million. It attributed the savings to reductions in hotel bookings and seat reservations on flights.

'We believe that as a result of our continued focus on cost control and margin improvement we will achieve our objectives for the current year despite the current trading environment and rising fuel and foreign exchange costs," said Peter McHugh, MyTravels' chief executive.

"Our priority remains improving the performance of our UK operations. Overall, our recovery is on schedule and I am confident of our continued progress."

Earlier this week rival firm First Choice released similar results, showing an improved operating loss for the winter ahead of improved prospects this summer.

Both firms are seeking to move towards long-haul flights and away from the traditional package holiday service, a sector crammed with competitors and appearing to be in decline.

With bookings for the next few months up on previous years and long-haul revenues having increased by 38 per cent, both companies hope to completely recover from their substantial winter losses by the end of their respective financial years.

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