MyTravel sounds alarm again

AILING MyTravel hit shareholders with yet another profits warning today after revealing it was forced to sell holidays on the cheap this summer.

The group, which is battling to secure its financial future, said margins in its UK arm were lower than expected given the high number of deals sold into the ?lates‘ market in August and September.

It now expects an operating loss in the first six months to 30 September and warned of likely further accounting revisions and asset writedowns in its annual results.

‘In the continuing difficult market conditions, it is likely further charges for impairment, in excess of those in the first half, will be necessary,‘ it said.

MyTravel takes seven million Brits on holiday each year through brands such as Airtours. It has been pushed to the brink by disastrous trading and changes to accounting practices that last year revealed a £50m black hole.

Its shares, which have lost 90% of their value since the start of 2002, today fell 1p to 17p. Analysts have been bracing themselves for the worst from MyTravel's second half after its August warning that margins were under pressure.