UK tour operator First Choice today gave a sunnier picture of the holiday market, saying the market was recovering and it was seeing robust bookings.
The group, which slashed capacity and axed 1,100 jobs in the wake of the September 11 attacks on the US, said today that the cost-cutting strategy was working.
First Choice said it had 'planned prudently' for the summer period, cut capacity and costs and resisted any temptation to be over optimistic about trading conditions. 'The business has responded well and we have been encouraged by booking trends', it said.
Losses for the half year to April 30 widened however, to £59.8 million sterling, from £46.1 million.
The statement comes in contrast to the recent shock profits warning from rival MyTravel, the former Airtours, which saw holidaymakers delay booking their summer breaks, leaving it with a glut of holidays to sell. The warning had prompted some critics to say MyTravel had not cut capacity enough.
First Choice owns Falcon/JWT Holidays and First Choice Travel Shops in Ireland. It has 24 stores and one call centre and employs about 200 people.
Today's figures come a week after a court overturned a decision by the European Commission in 1999 to block a £850 million hostile takeover bid for First Choice by Airtours. The decision led to speculation that a wave of mergers will sweep through the travel industry.
