Troubled tour operator MyTravel today said action to turn the business round was having an effect as it posted a reduction in half yearly losses.

However the group, formerly known as Airtours, said losses at its UK arm were still too high amid challenging market conditions.

The UK division had a "difficult start" in May with further evidence that 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 the group disposed 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 today: "This performance demonstrates that the actions we are taking to move the business forward are having an effect."

Friday May 28, 2004