Are MyTravel still in trouble?

[DTVAirport]

Are MyTravel still in trouble? If so, why are they so troubled?

[Humberside]

I think they have refinanced now and are due to make a profit soon (this year or next)

[G-VEIL]

Are MyTravel still in trouble? If so, why are they so troubled?

Well My Travel have just done a restructure (or to be more techincal a debt-for-equity swap) which involved losing 9 aircraft and many job losses, and according to latest reports, things are looking a lot better, and even the share price has gone up on the back of increased bookings for package holidays and by reducing capacity in European markets, plus a boost in the number of America bookings.

The reason for MyT's problems stem from accounting problems and the downturn in the travel industry after the September 11 attacks, with losses of £910 million just for 2002-03.

[DTVAirport]

Re

Yea, but I thought they'd lost alot of passengers cos of a crap service or sommet, anyway, if the September 11th attacks are to blame, then why are the other british charter airlines seemingly unaffected?

[G-VEIL]

Yea, but I thought they'd lost alot of passengers cos of a crap service or sommet, anyway, if the September 11th attacks are to blame, then why are the other british charter airlines seemingly unaffected?

You will find all airlines have some degree of poor customer service, MyT is no exception, but it certainly isnt a factor in its downfall. As I said before, there were "accounting problems" (translation: overcapacity, bad management, overstaffing, chaotic organisation, etc). MyT is a charter airline and the holiday package market has suffered a decline for a while now. My guess is that with lots of LCC's around like Easyjet, RyanAir and BMI, people have a better reason to get cheaper flights and find their own hotel or accommodation abroad - especially shorthaul to Europe. Medium to long haul destinations are the growth area for package holidays now, and this is where MyT will do well.