Allbury Travel Group reduced its losses to £1.9 million in the 12 months to the end of October last year, compared with £13.5 million in 2007.

The 86% drop in losses came as turnover fell by 45%, from £76.7 million to £41.9 million, according to accounts filed at Companies House last week.

This was as a result of big cuts in charter seat capacity and committed hotel rooms, and a reduction in administration costs.

The group made a trading profit last winter for the first time in years.

Chief executive Eamonn Ferrin said late bookings had increased “significantly” in the past few weeks but summer 2009 would remain “particularly challenging” for eurozone destinations.

Ferrin and chairman Michael East stood down last week but are staying on as management consultants until the end of the summer.

E-Clear managing director Elias Elia, who is the “controlling party” in Allbury’s parent company, the British Virgin Islands-based Allbury Ltd, said the two left after “completing their task of turning the company around”.

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