Britain's biggest holiday firm, Airtours, reported a 57 per cent rise in annual operating profits today but warned its outlook was uncertain and confirmed it had cut 1,600 jobs since September 11th.
The company, which owns the Going Places travel agencies and the Airtours airline, said although growth this year will be challenging, it expects trade in the current year to be in line with last year and sees growth only returning for 2003.
The group, which is to change its name to MyTravel Group Plc, reported operating profits before e-commerce, exceptional items and goodwill of £147.4 million sterling for the year to September 30th, slightly above analysts' forecasts of £140 million-£145 million.
Annual pre-tax profits fell sharply to £81.3 million after £211.4 million, following the sale of its share in cruise ship operator Costa Crociere and the acquisition of loss-making German business FTi.
Airtours shares dipped two pence to 230p by 8.35 a.m.
Chief executive Mr Tim Byrne said the group had cut 1,600 jobs since September 11th. More than half of these were in the United States, 200 in Britian, and the rest in Scandinavia and Germany. This brings the group's worldwide number of employees down to 27,000.
Chairman Mr David Crossland said winter 2001/2002 bookings were down 8 per cent in a season it was selling 15 per cent fewer holidays, but he hoped the summer 2002 season would show a revival.