MyTravel Group has belatedly revealed worse than expected results for the year to September 2002, and has adjusted its 2001 results downward. The UK travel giant, which owns holiday airline MyTravel Airways and low-fare operation MyTravelLite, posted a pre-tax loss of £72.8 million ($115.1 million) for its 2002 financial year. It also revised its 2001 figures to a pre-tax profit of £62.3 million, from the previously stated £81.3 million.
The group blamed changes in accounting procedures for its 2002 performance, and said that accumulated accounting errors in past years, discovered in 2002, caused the adjustment to 2001 results. The company added, however, that approximately £15 million of lost profit in 2002 would be realised in 2003 instead, due to a new accounting policy.
Group turnover for 2001 was restated as £5.05 billion, down £10.6 million, while 2002 turnover was down 13% to £4.38 billion.
It is not clear how the results may affect either MyTravel Airways or MyTravelLite, which between them operate around 50 aircraft including Airbus A320s, A330s, Boeing 757s, 767s and McDonnell Douglas DC-10s. Group chief executive Peter McHugh says MyTravel is looking to divest "a small business" within the group to restore profitability.
Source: Flight International
