p14-15 City May 15 13/5/09 16:08 Page 14
City & finance
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Co-op Travel posts
first annual profit
Chris Gray.
rebranding exercise as well as consolidating
Boeingmedia
THE CO-OPERATIVE Travel has turned a pre-tax IT systems and closing some branches and
loss of £0.5m into a £12.1m profit thanks to a specialist businesses.
Tam makes £17m
rebrand, shop refurbishments, the closure of However, Greenacre warned that sales since
loss-making branches and a rise in internet the start of the year had suffered because
in first quarter
sales. of the credit crunch, sales to eurozone countries
The results mark the first annual profit the were suffering due to the strength of the euro
group has recorded since the merger of the and job insecurity was making customers book
BRAZILIAN airline Tam increased its profits by United Co-op and Travelcare in 2007. later than normal.
26% in the first quarter of the year, despite Results from the retail shop division were the But he said he was confident The Co-operative
falling passenger numbers. biggest contributor to overall performance, but Travel would have another “profitable” year.
The airline made a post-tax profit of £17m in internet sales rose 250% from a low base to a The launch of its own tour operation with
the three months to the end of March compared “relatively healthy” level. Cosmos Holidays under The Co-operative Travel
with £13.6m in the same period the previous year. Gross revenue was up 20.7% to £262m and brand would help summer 2010 bookings after it
Passenger numbers fell 3% to 7.3 million but operating profit was £5.3m compared with a went on sale this summer, he said.
profits were helped by an increase in onboard loss of £2.1m last year. The results covered the The Co-operative Travel’s parent company,
revenue, a rise in income from its frequent-flyer 12-month period to January 10, 2009. The Co-operative Group, which also includes
programme and an 18% drop in fuel costs to Managing director Mike Greenacre said the grocery, funeral and pharmacy divisions, posted
£219m. company was reaping the benefits of the operating profits up 11% to £393m.
Weak demand hits
InterContinental profits fall 56%
Travelport results
INTERCONTINENTAL Hotels Group suffered a with revpar down 20%, while the Middle East
56% drop in net profit to $27m for the first was the most resilient market, with a drop of
TRAVELPORT, the owner of the Galileo and quarter. 11.5%.
Worldspan global distribution systems, reported The company blamed weaker consumer IHG suggested the slump in demand may be
a 21% drop in first-quarter pre-tax profits to spending during the recession and strong bottoming out, but that competition was intense.
$136m on the back of weak demand. competition for the huge decrease. Chief executive Andrew Cosslett said: “Occu-
The drop in profits for the two GDSs was The profit figure included exceptional costs pancy showed signs of stabilisation in the quar-
smaller, down by 13% to $161m year-on-year. of $21m for a final payment to its UK pension ter, but room rates, which held up well during
But Travelport’s wholesaler, Gullivers Travel fund and $5m for 2008, declined
Associates, saw its $9m first-quarter pre-tax the relaunch of under the pres-
profit last year slump to a $10m loss this year. Holiday Inn. sure of a compet-
Travelport chief executive Jeff Clarke said cost Revenue fell itive market.
reductions had helped the company to withstand 24% to $342m. “The outlook is
the downturn but they would not be enough to Revenue per still tough but we
offset the fall in demand. available room are taking decisive
“Travelport’s results reflect the impact of the (revpar) was also action on costs
continued global recessionary environment,” he down, 13.6%, but without denting
said. the group claimed our ability to grow
Chief financial officer Mike Rescoe said the it had outper- market share.”
company would make more savings on top of formed rivals in
$36m already achieved at Worldspan in the first this area. ■ London hotel
quarter. China was IHG’s sees shorter
Travelport has $268m in cash reserves. weakest market, stopovers, p24
14 15.05.2009
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