Ebookers suffers war and SARS hangover

British online travel firm ebookers today admitted that it was still feeling the effects of the Iraq war and SARS despite trimming second quarter losses.

The group, whose brands include ebookers, Travelbag and Bridge the World, said demand for long and medium-haul destinations was still lower than expected because of the knock-on effects of Sars and the Iraq war on consumer demand in some markets.

But despite the double blow, results for the second quarter of 2003 published today show underlying losses narrowing to just £900,000 (€1.2m) from £1.7m (€2.4m) a year ago.

Because of its primary focus on the long-haul and medium-haul destinations, the second quarter has traditionally been the weakest part of the year for ebookers – with most of its business coming in the second half of the year.

Chief financial officer Nigel Addison Smith said: “These strong results in what is now our seasonally weakest quarter, combined with the effects of the war and Sars, show the capability of the ebookers businesses.”

The group also announced plans to expand its Indian office facility to take on work from other firms.

Ebookers said it had taken on extra space at its site in New Delhi and would expand the number of staff from 600 to 1,400.

Moving office facilities to India has enabled ebookers to save an estimated £1.4m (€2m) in the second quarter alone and, as its recently acquired Travelbag business is further integrated within the group, this is set to rise to £2m (€2.8m) per quarter.

And now by taking on work from other firms, the facility would move from being a “cost centre” to a “profit centre”.

Chief executive Dinesh Dhamija said: “When combined with the high internet growth of an online travel company we believe that this gives ebookers a unique position to build on the profit potential of the group.”