AIRTOURS has cut group capacity by only 2% for summer 1999 after a steady growth in bookings during January.
The operator, recording pre-tax losses of ú19.4m in the first quarter, said it had planned a 5% capacity cut after fears of a lates market bloodbath.
“Our worry was that other operators would pile on capacity and create another 1995,” said Byrne. “We are monitoring the situation on a daily basis but it is looking okay. We are currently 5% up on last year.”
Industry sources said the operator had reduced its core Airtours Holidays brand by 5%, but offset the cuts by increasing capacity with Direct Holidays and Panorama Holidays.
In winter 1998/99, bookings are 6% ahead of last year with 1999/2000 showing growth of 20%, largely due to millennium product demand.
The ú19.4m deficit in the traditional loss making first quarter was an increase of ú2.1m on last year. Turnover increased by 40% to ú708m.
Byrne said acquisitions in UK tour operating – which saw losses increase from ú1.4m to ú4.8m – led to the higher seasonal loss. But he added all business had shown year-on-year increases, particularly in Scandinavia.
Further losses in Canada were offset by improved performances in the US. Meanwhile Airtours has increased its shareholding in German operator Frosch Touristik by 29.1% to 36%.
TABLE: Results 19991998
UKtour operating- ú4.8m- ú1.4m
UK retail- ú10.9m- ú11.6m
Other Europe (SLG/WELG)- ú0.5m- ú2m
North America- ú3m- ú3.3m
Others- ú0.2ú1m
TABLE: Airtours first quarter results to December 31