Costcutting plans announced at lastminute

Online travel business lastminute.com today said it planned to cut 350 jobs as part of a drive to reduce costs by 10% in the next financial year.

The business review, which follows a string of acquisitions by the company, is likely to result in the consolidation of 25 offices into 15.

Announcing third quarter figures, lastminute also said total transaction values in the three months to June 30 increased 78.2% to £268.9m (€406.8).

It described the period as a “challenging” one for the travel industry, but said it had still increased underlying earnings for the quarter to £4.3m (€6.5m), from £4.1m (€6.2m) a year earlier.

In the current quarter – covering the busiest period of the year for lastminute – the company said July trading had suggested it could attract £400m (€600m) worth of transactions.

Chairman Allan Leighton added: “The move by the consumer to be even more last minute makes our unique model more relevant than ever. However, the summer quarter as always remains both key and difficult to predict."

The company provides travel and leisure offers directly in 13 European countries and also has three international joint ventures.

The trading update eased the nerves of investors as lastminute.com shares rose 7% in early trading in London.