Ebookers cut losses in half

Online travel agency ebookers halved full-year losses today but warned sales had been affected during the lead up to war in Iraq.

The group benefited from the transfer of back office operations to India as losses for 2002 reduced to £12.3m (€18.2m).

Strong trading was also reported in January but ebookers said the prospect of war meant many potential customers had opted to delay bookings.

Cost-cutting measures, including a reduction in marketing, should ensure the performance in the first three months of the year remains satisfactory.

The company said: “The commencement of hostilities against Iraq will inevitably have an impact on sales and profitability for the remaining days of the first quarter.”

However, ebookers said it hoped to benefit from “pent-up demand” once the conflict is over.

Plans to break into profit for 2003 should also be helped by the acquisition in January of high street rival Travelbag.