AIRTOURS has predicted a downturn in its first-quarter figures in 2000 following poor sales over the millennium. The operator also indicated it would slightly increase capacity next year despite tough market conditions in 1999.
The first-quarter warning came as it reported a slight dip in 1999 UK profits of £600,000 to £104m.
Chairman David Crossland revealed capacity has been cut over the new year due to poor demand. Sources said around a fifth of its seats have been taken off the market.
“People are staying at home with their families over the millennium,” said Crossland.
Increased volumes and improved selling prices were offset by higher discounting and distribution costs, said Crossland.
However, advanced bookings for summer 2000 are encouraging with a 29% year on year increase. Winter 1999/2000 is 5% up despite the millennium worries, added Crossland.
He said capacity would be slightly increased for 2000 although he declined to give figures. It is thought that it may put on 4%-5%.
No breakdown was given for Going Places’ performance, although Crossland insisted it was on a par with last year.
Travelworld generated a profit of £500,000.
Crossland also welcomed the appointment of Charles Gurassa as Thomson chief executive.