P14 City apr10 7/4/09 19:48 Page 14
City & finance
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BA lay-offs ‘to lift
losses to £225m’
Technology is high
BRITISH AIRWAYS has warned its total losses for
the year ending last month will be bigger than cost for Low Cost
expected, due to high redundancy costs and a
further decline in the US market.
It is predicting an operating loss of £150
Lee Hayhurst.
factor on the web was speed, followed by price
million. This is in line with previous forecasts LOW COST Travel Group’s profits this year were and brand.
– but they included redundancy costs as well as held down by a shift to new technology, chief The group was boosted during the year by an
£20 million in lost business as a result of the executive Paul Evans has claimed. agreement with Jet2 to provide inventory for its
snow falls in early February. The group reported a 48% rise in annual holidays website, after Jet2 ended a deal with
However, the latest prediction is for £150 pre-tax profits to £457,329 and made an upbeat On Holiday Group.
million losses plus £75 million for redundancies. assessment for the rest of the year, predicting an Evans claimed sales were 186% up on last
Aviation analyst Douglas McNeill said the upturn in the lates market to Spain. year and he expected business to pick up for
latest forecast showed BA’s underlying loss had The group’s gross margin remained steady lates, when there will be good deals available.
increased to £130 million, up from £110 million. at 13% for the year to October 31, while its “I don’t know if people are trading down or
BA said last week 300 more managerial posts gross transaction value increased by 44% to sideways but they are certainly trading,” he said.
would go, on top of the 450 announced last year. £50.7 million. Low Cost had also benefited from hedging its
Traffic results were “not bad” considering the But Evans said profits were currency last year before
downturn but March had been a weak month for affected by switching to a new, the value of the pound
yields, particularly on US routes, said McNeill. faster IT platform. plummeted, Evans added.
BA carried 2.6 million passengers last month, “Last year was difficult The latest results do not
down 8.2% from a year earlier. for us because we changed include Resorthoppa, which
technology,” he said. is expected to help double
“In February, March and Low Cost’s transaction value
Ryanair outpaces
April we had to get everyone to £100 million this year.
reconnected to different XML Evans said Resorthoppa’s
easyJet in March
feeds and we lost substantial business was up 25% year
business.” on year, and that its integra-
Evans claimed customers tion into the group was
RYANAIR carried 4.7 million passengers last were continuing to move ahead of schedule, with
month, 5% more than in March 2008, taking its online from the high street £2 million of savings having
total for the 12-month period to 58.6 million. and that the most significant Low Cost chief executive Paul Evans already been realised.
However, load factor fell by two percentage
points to 77% in March, and 81% over the year.
Meanwhile, easyJet reported a 6.3% drop in
Sunshine buys
airporttransfers.co.uk will be launched shortly.
March passengers to 3.49 million, moving its “Familyholidays.co.uk will offer trips which
annual total up 11.5% to 44.2 million. suppliers guarantee will have things such as
EasyJet’s load factor was down 2.8 percentage
domain names
child seats on transfers, kids’ clubs, large accom-
points to 84.7% in March but up 1.3 points to modation and adjoining rooms,” he added.
84.9% over the whole year. SUNSHINE.CO.UK has bought several domain “And airporttransfers.co.uk will compare the
EasyJet said that the six months to the end names, including tenerife.co.uk and majorca.co.uk. various transfer companies; we expect travel
of March were in line with expectations, with The online agent’s two new sites should be agents to use this as much as consumers.”
average load factor rising 1.7 percentage points up and running in a few months, according to The company started two years ago. Brown
and passenger numbers by 2.9%. co-founder Chris Brown, who used to work at claimed its total turnover was £12 million in its
lastminute.com and Medhotels. first year of trading, £16 million last year and is
EasyJet reshuffle: EasyJet chairman Sir Colin He said: “These will be destination-specific expected to hit £24 million this year.
Chandler will step down on July 1, to be and while their predominant aim will be to sell He said the agency, which is part of Hays
replaced temporarily by Sir David Michels. BT holidays, they will also contain information and Travel Independence Group, had recorded sales
chairman Sir Michael Rake will join the board user-generated content. We want to build a up 160% year-on-year so far in 2009.
as deputy chairman before Chandler leaves. community around the destinations.”
Brown added that familyholidays.co.uk and ■ Hays Travel IG conference report, p18
14 10.04.2009
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