MYTRAVEL has issued a cautious trading statement for 2004
bookings claiming it faces significant challenges ahead.

The beleaguered operator said bookings for winter 2003/04
and summer 2004 are “satisfactory” at this stage and at “acceptable” margins.

But it admitted the group still faces “significant
challenges which will take time to overcome”.

In a statement, MyTravel said it was confident it would be
able to deliver the cost savings it has identified, but its high fixed cost
structure and high debt levels meant its earnings and cash flows will remain
subject to “significant risk”.