First Choice sees 'encouraging' sales

Summer holiday season is better than expected

Tour operator First Choice has said its sales for the coming winter holiday season and for next summer are "encouraging".

It added that its results this year should be in line with expectations and that it was "looking forward with confidence to the new financial year".

It said UK sales volumes were 11% down on last year over the summer but that this was in line with capacity cutbacks the firm has made.

First Choice cut 1,100 jobs after the tourist industry suffered a severe slump in the wake of last year's 11 September attacks in the US.

Sales for the coming winter season are now only 3% behind last winter, and First Choice said sales since 11 September were running 30% ahead of the same period last year.

Bookings across the group as a whole since 11 September this year are up 36%.

Rival struggles

The confidence at First Choice is in sharp contrast to rival MyTravel, which was formerly known as Airtours.

Shares in MyTravel slumped earlier this month after it issued its third profit warning in five months.

MyTravel cut its profit target by £20m and said it may have to take a £30m accounting charge.

Press reports at the weekend said the company is to start talks this week aimed at breaking the business up.