MyTravel has released its annual results for 2006, revealing that the operator has cut its UK capacity for winter 2006/07 by 10% after an overall 9% drop in bookings for the season.
However, it appears late bookings are beginning to make a difference. MyTravel reports that in the last eight weeks the drop in bookings has decreased to 6%, meaning as of December 10 55% of total UK capacity had been sold, with the average selling price up 4%.
Overall the operator has reported a group pre-tax profit of £43.8 million on the year ending October 31, an improvement of more than £60 million on the previous year when it reported a loss of £17.4 million.
Group profit from operations increased by 20% to £61.7 million, while the UK loss from operations was reduced from £27.4 million to £12.9 million, a drop of 53%.
The group has also warned summer 2007 trading in the UK has started slowly. Cumulative bookings are down 11% with an expected capacity reduction of 5%. Again improvement has been noted in the last eight weeks, with sales now flat year on year.
By December 10, 23% of all of next summer’s UK capacity had been sold on a flat average selling price. The operator said it was too early to establish any trends for next year.
MyTravel also confirmed it is in discussions with First Choice Holidays regarding the acquisition of First Choice’s Mainstream business and certain related operations, although it refused to comment further.