ebookers cuts European and Indian jobs as sales soar

Online travel firm ebookers has announced it is to cut jobs in India and Europe, despite reporting a 47 per cent increase in sales for the first quarter of 2004.

The company was one of the first big names to embark upon a strategy of offshoring to India but has now announced it is cutting 70 jobs in the area as well as more than 200 across Europe.

Revenues for the first quarter were up 47 per cent to £160m, giving the company profits of £21m - and also up 47 per cent on the comparable quarter last year.

The company also helped fight the effect of falling airline revenues by growing the proportion of its non-flight revenues. Airfares now account for 60 per cent of revenues, compared to 71 per cent this time last year.

Dinesh Dhamija, chairman and CEO of ebookers, said in a statement: "This good set of results demonstrates the strength of our business model and brand and our continued ability to generate growth. We are delivering on profits and our sales are healthy and on target."

"We have an increasingly positive outlook for the year ahead," he added.

The company reiterated its commitment to growing revenues away from the core airfare business by announcing the appointment of Ranjan Singh who will soon be joining ebookers as head of hotels.

Singh is currently director of lodging demand at rival firm Expedia.