MyTravel is set to report a pre-tax profit of between £40 and £45 million – its first pre-tax profit for five years.
The UK operation is expected to improve its operating loss from £27.4 million to between £10 to £15 million for the 12 months to October 31st.
MyTravel admits if the current difficult UK trading environment continues then its might not achieve its target of a 3.5% UK operating margin for 2006/7.
UK trading remains “challenging” with winter charter holiday bookings down 9.5%, although capacity for the winter has been cut by 10%.
The results for the financial year will be released on Thursday December 14th.