Lastminute axes 350 jobs

ONLINE travel agency lastminute.com said today it was axeing 350 jobs to slash costs.

Chief executive Brent Hoberman said a review of the business had found it could cut 10% off overheads.

The move comes at a tough time for the industry and in a week that has seen rivals Ebookers and InterActive, US owner of expedia.com, issue profit warnings.

Lastminute said the coming months would be challenging but fell short of a profit alert. Underlying profits for the three months to 30 June were £4.3m against £4.1m a year earlier, a shade lower than analysts' forecasts. But the total value of transactions - £268.9m against £150.9m a year ago - beat expectations.

Travel firms have been hit by people booking summer holidays later and the rise of low-cost airlines. Lastminute has not been immune but its wider range of products, especially hotels and car hire, have insulated it from the worst of the problems.

Lastminute shares were up 9 1/4p - more than 7% - to 135 1/4p by 10.30am. However, the rise follows an eight-month slide from 315 3/4p. The shares floated at the peak of the dotcom bubble in 2000 at 380p.