Jetset Travelworld has warned that a challenging economic environment has impacted its business with the company seeing a slow down in consumer demand.
According to the Group, trading conditions for March and April 2012 which traditionally represents growth has shown a decline.
Despite the number of transactions having increased year on year throughout both the domestic and outbound air market, the value of outbound air transactions is less than the prior year as a result of reduced selling prices for international product.
In light of the Groups Total Transaction Value (TTV) being below expectation Jetset Travelworld will be reviewing all aspects of its business.
Additionally, the Group continues to acquire losses in the Travel Management segment due to the cost of servicing the Australian Government travel management business.
Depending on the Groups trading conditions in May and June, Jetset Travelworld may take action to improve performance by assessing the carrying value of assets.
This may result in a non-cash impairment to the Travel Management segment which total $11.8 million," the company said.
Source = e-Travel Blackboard: S.P