EBOOKERS, the travel group, yesterday shrugged off concerns that hoteliers are cutting their ties with online booking agencies.

Responding to reports that InterContinental Hotels Group (IHG) has broken ties with Expedia, a rival travel company, Michael Healy, finance director of ebookers, said hotel groups in Europe were less powerful and more reliant on intermediaries. He added: “(IHG) haven’t pulled out of any deal with us.”

Mr Healy was speaking as ebookers, which in July gave a profit warning, reported a pre-tax loss of £6.4 million for the second quarter to June 30, against a £6.9 million loss last time. Gross sales rose 15 per cent to £136 million, with like-for-like sales up 30 per cent. First-half pre-tax losses eased to £5.3 million (£11.7 million).

The shares jumped 17½p to 140p, bolstered by an upbeat outlook. Mr Healy said that trade in June had been slow, in part because the Euro 2004 football had reduced demand for mid to long-haul flights. However, recent trading had been “encouraging”, he said.

Ebookers yesterday tried to improve guidance to investors by publishing a breakdown of its sales. This revealed that 38 per cent of sales in the quarter were made online, up from 27 per cent last year.

Evolution Beeson Gregory said results were in line with revised forecasts and like-for-like growth was impressive.However, analysts said that online sales growth was from low-margin short-haul flights.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax