Pan-European online travel agency ebookers.com has said it expects to report narrowing losses when it publishes Q3 results at the end of the month.

Despite the massive hit it has taken as sales shrink in the wake of the 11 September terror attacks in the US, ebookers said that the results for the period between July and September will represent a "significant advance towards achieving
positive cash flow".

Indeed, the company said that Q3 results are expected to be the "best since 1999 flotation, despite the US incident".

Notwithstanding this progress, ebookers has said it is looking to cut costs to ensure that the operation can still function during this difficult time for the travel industry.

In a statement, CEO Dinesh Dhamija said: "There are strong indications within our business that consumer interest is gradually returning towards normal levels.

"However, we are taking decisive measures to ensure that we have the cost structure suitable for slower growth of demand and yet the flexibility to take advantage of both the complete return of demand and other market opportunities that this environment presents."

On Monday El Reg reported that as many as 120 jobs could be axed at ebookers as it seeks to streamline its operation.

By mid-morning shares in ebookers has leapt ten pence (13 per cent) to 85 pence. ®

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