club med encouraged by rise in bookings

CLUB Med has said it is encouraged by a rise in bookings over the last month, despite announcing first half-year losses of £15.9 million.

The losses, for the six months up to the end of April, compare with a profit of £3.8 million for the same period last year. The group blames the impact of September 11 for the downturn.

The French resort operator said bookings were currently down by 14% cumulatively but over the last four weeks bookings had risen to the level of minus 6.9%.

The group cut capacity by 13.9% after the September 11 attacks, closing 17 holiday villages around Europe, and reorganised its operation.

The group was further hit by tragedy in September when it was forced to shut its Athenia resort in Greece three months early following the death of a boy who became trapped in the pump of a paddling pool.

Club Med chairman Philippe Bourguignon said: “We are encouraged by the first results of our actions taken against the adversity we have faced these last months.”

But he said it would not be appropriate to provide a forecast for the summer season at this stage.

Sales revenues for the interim period were down 15% to £520.7 million. The operating loss was £2.5 million, compared with £21.6 million profit last year.

The group is confident it will continue to drive down the operating loss in coming months.