Club Med bounces back

Club Med has entered the black on its Europe, Asia and America divisions for the first time since 1999.

The group claimed the positive report, covering the six months to April 30 2003, resulted from improvements in its pricing and product mix, a reduction in fixed costs and good capacity management.

Overall revenues were down to €785 million for Winter 2003, against €816 million for the previous year. However, pre-tax profit came in at €12 million, against a loss of €4 million for Winter 2002.

Chairman Henri Giscard d’Estaing said cost cutting measures had borne fruit and the group’s operating result was now less dependent on operating factors.

Club Med added its current reservations for summer 2003 are down 13.5%, with capacity trimmed by 8% compared with 2002.