Tsunami Cost MyTravel £12 Million

MyTravel
has revealed that the Boxing Day Tsunami impacted their operating results by £10 million in Northern Europe and £2 million in the UK. In this morning’s Annual General Meeting, MyTravel admitted that rebuilding the business in the UK could take another 2 years:

“We have made significant progress in restoring the business, however a lot remains to be accomplished in the UK. The company is making good progress in line with our business plan and we continue to target an operating profit for all three divisions in 2006 and an industry standard 3.5% margin in the UK in 2007”.

“As part of this business plan, in the UK we have reduced capacity for this year, begun to make improvements to our product offering and continued to focus on cost control”.

“All three divisions have performed in line with our expectations for the winter, despite the effect of the tragic events in South East Asia, which we estimate to have impacted our operating result by £10 million in our Northern Europe business and £2 million for the UK”.

Despite their losses, MyTravel claim that the board expect that they will still achieve their business plan for 2005
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