Holiday firm On the Beach has taken all trips between now and May off sale as demand in the tourism sector remains 'very weak'.
Ahead of its AGM, the Manchester-based firm said bookings on holidays at the end of 2020 and start of 2021 were 85% down as people reacted to the national lockdown and the situation in overseas holiday destinations.
It said the global uncertainty would impact on its full-year performance but added that it would be investing in certain areas to gain market share while the tourism sector was in stasis.
On the Beach said it was debt free and had access to a 拢75m credit facility, with current activities burning through around 拢2m a month even it receives no income.
Chief executive Simon Cooper said: 鈥淭he first four months of our financial year have seen differing tiering levels across the 海角视频, followed by the current nationwide lockdown and ban on international leisure travel.
鈥淐learly this has and continues to impact booking volumes and the board believes that booking volumes will remain weak through H1 and into H2.
鈥淔ollowing the prudent activities undertaken in the last financial year, the group remains in a strong and debt-free financial position.
鈥淭he board is confident about the group's long term strategy and we will continue to evaluate the growing range of exciting opportunities to build our market share both in the 海角视频 and internationally."
On the Beach said it had taken all holidays departing before May 1 off sale and said it expected demand to be weak until movement restrictions were lifted and vaccines more widely deployed both in the 海角视频 and overseas.
It said the pandemic offered 鈥渁n unprecedented opportunity to drive market share gains鈥 so it was investing in talent and technology, marketing, customer service and relations with hoteliers.
It said it was owed 拢5m by customers in additional deposit payments and 拢3m from airlines for refunds it had given to customers.
But its 拢75m credit facility 鈥 which includes 拢25m from the Government's Coronavirus Large Business Interruption Loan Scheme 鈥 remains undrawn.
The company added: 鈥淚n light of the continued market uncertainties, the group is maintaining its suspension of full year guidance for FY21 until such time that there is more certainty over the timing of, and extent to which travel can return to normal.鈥
