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Mytravel forecasts UK profitability for 2006
MyTravel claimed UK recovery is on schedule as it unveiled its financial results for the six months to April 30.
The group has reduced loss before tax to £70.3 million compared to a loss of £119.5 million in the winter period in 2004/05.
Group loss from operations reduced by £21.3m to £75.8m despite a significant increase in the cost of fuel and foreign currency, it reported.
UK seasonal loss from operations reduced for the third year to £108.8m from a loss of £131.5m in the prior winter period.
“Our expectations for the full year 2006 remain unchanged,” said the statement.
“In particular, we remain confident that the UK will achieve profitability this year.
“This is despite fuel and foreign currency cost increases for the group which will impact our performance for summer 2006, particularly in the UK.
“The group continues to make progress towards its strategic goals and we continue to target an operating profit in all divisions for 2006 and a margin of 3.5% in the UK in 2007.”
MyTravel said summer 2006 bookings are improving but continue to be behind last year.
“This reflects the general trend to later booking, compounded in the UK and Northern Europe by the World Cup, and softness in North America for the late summer Caribbean season.”
It said capacity is being reduced in all divisions as it continues to focus on margins and not chase volume.
Chief executive Peter McHugh said: “We continue to make good progress towards our targets, as evidenced by a 41% reduction in our winter group loss before tax over last year, which reflects a £23 million improvement in UK operating performance.
“This is despite increased cost of fuel and foreign exchange of £25 million.
“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.
“Our priority remains improving the performance of our UK operations. Overall, our recovery is on schedule and I am confident of our continued progress.”
More to come….
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