A pre-tax loss of £350M is still a massive blow to any PLC even my travel. The real issue is that of perception and the stock market is all about that. The problem is that the UK public have started to switch from package holidays to self booked holidays using the internet.
Peter McHugh's statement that a main factor was the hot summer for the slump in bookings. I don't think so. That's like saying that 30% of their customers only book their summer holidays in June!!! Profitable in 2005. I don't think so, without a wholesale sell off. I would bet that there are several risk management meetings starting in the City as I write this.
The problem is that these large package holiday companies are a bit like the major record companies. Serving an ever decreasing market! Not a bright future.
FMC