Troubled holiday operator MyTravel said late bookings were hampering its efforts to reduce losses.

The company, which operates through Gatwick, said action to turn the business round was having an effect as it reported a reduction in half-yearly losses.

But losses were still too high amid challenging market conditions. The tour company reported a difficult start in May with further evidence customers were leaving their bookings until later.

Pre-tax losses were reduced to £199.6 million in the six months to March 31 from £617.9 million in the same period last year after disposal of several operations.

In recent months, MyTravel has sold businesses including its German operation and its loss-making fleet of cruise ships in a bid to reverse spiralling losses.

Chief executive Peter McHugh said: "This performance demonstrates the actions we are taking to move the business forward are having an effect."

The group said it was continuing to target a significant improvement in 2004 and a return to profitability in 2005. Since the emergence of its problems two years ago, MyTravel has secured agreement with lenders to restructure its debts, announced the sale of a number of businesses and cut 2,000 jobs.

Tuesday June 01, 2004