Ebookers posts first quarterly profit

Online travel agency ebookers edged into the black for the first time today after overcoming the £4m (€5.62m) impact of the Iraq war.

The group has continued to benefit from the transfer of office operations to India as adjusted profits for the first three months of 2003 reached £100,000 (€140,000), compared with losses of £2.2m (€3.1m) a year earlier.

The first ever quarterly profit was delivered ahead of schedule and came despite estimates the Iraq war had reduced profits by up to £4m (€5.62m).

Today’s figures were also helped by the addition of Travelbag, the rival high street operator acquired by ebookers for £55m (€77m) in February.

Chief executive Dinesh Dhamija said: “We are delighted to have achieved this profitability milestone, the first in the pan-European online travel industry.

“It is testament to our high growth internet model and our low cost business process outsourcing centre in India.”

Ebookers said the second quarter had also been impacted by the Iraq war, although trading since the end of April had been “extremely encouraging” in areas not affected by the SARS virus.

The company added that it was still too early to determine the cost impact of SARS.