FIRST Choice is anticipating double-digit earnings growth for the 12 months to the end of October 2005, despite a “number of significant, tragic, natural disasters and geopolictical events”, such as the Boxing day tsunami, the London July bombings and a terrible hurricane season.
Chief executive Peter Long said the performance was in line with expectations. He said a turnover rise of 18% for the multiple’s long-haul summer 2005 product, and double-digit growth for specialist holidays, is helping the company to move towards its target of a 5% margin.
The group has cut 2005/06 winter capacity by 6%, resulting in higher selling prices. Revenues are up by 39%.
Long also revealed summer 2006 bookings are marginally down but revenues and margins are up on 2005.
He said: “The group is well placed for the coming year, as we adjusted capacity anticipating consumer demand for flight-only and three-star winter holidays would be weaker.”
Meanwhile, First Choice has expanded its Greek operation by acquiring outbound and incentive business Triaena and Congress Tours SA.