MyTravel has ‘profitable’ summer

MYTRAVEL expects to wipe out its 2003 £365.6 million operating loss by breaking even this year, while it meets with its banks today over a debt-for-equity swap deal.

Chief executive Peter McHugh said the UK summer season would be profitable although it will still record a loss for the financial year.

“After a difficult start, the UK market for summer 2004 has improved,” McHugh said. “For the 12 months to 30 September, while the UK division will still show a loss, its performance will be significantly better than in 2003.”

He said northern Europe and north America were having “excellent” summers and would be profitable for the current year.

Bookings for winter he described as “encouraging”.

Meanwhile, it’s the first time the troubled operator has confirmed a debt-for-equity swap deal is its favoured option to rid it of its near £1 billion debt, after hinting shareholders’ interests could be diluted in its interim results.

Results for the financial year ending on October 31 2004 will be published in December