Ebookers helps ease travel blues

ONLINE flight ticket agent ebookers.com is helping to dispel travel industry blues by coming close to breaking even in the third quarter.

Despite suffering a sudden sales slowdown in the wake of the 11 September terrorist atrocities, ebookers' aggressive cost-cutting helped shrink its operating loss to £500,000 in the three months to 30 September versus a £5.7m loss in the previous three months. Including interest income and foreign exchange gains ebookers actually made £200,000.

The company, which axed a £15m online advertising deal with AOL during the period and cut 140 of its 700 staff last month, posted a pre-tax loss in the three months to 30 September of £2.6m, sharply down from £8.6m in the previous quarter.

Forecasts that ebookers will move into the black early in the New Year now seem achievable despite the public's current reluctance to fly. It said the results were a vindication of its business model and its wider concept of selling tickets across Europe via the internet. The shares surged 15 1/2p to 113 1/2p.