MyTravel is raising funds by selling some businesses

MyTravel said it now expects to make a loss in the second half of this year.

It revised its expectations because of poor holiday sales in the UK market during the important late summer period.

Profit margins were weak because of the high proportion of late sales at low prices, the firm said.

Fund-raising

MyTravel's shares closed down by 1.75 pence at 16.25p in London on Thursday.

MyTravel has been battling for survival in a difficult travel market for the last two years.

It won a breathing space in September when its creditors agreed to reschedule �221.6m of debts which had been due for repayment next year to January 2007.

MyTravel issued three profit warnings in a seven-month period during 2002.

In August 2003 it said pressure on profit margins would mean little, if any, growth in second half operating profits.

MyTravel is selling off parts of the business it considers marginal to help restore itself to financial health.

It said on Thursday it expects to raise �146.7m from the sale of its Auto Europe car rental operations, its US-based business World Choice Travel (WCT) and cruise operations.

The latest profit warning came in a circular to shareholders giving details of an Emergency General Meeting on 17 November to approve the sales.

The firm said that "bookings for winter 2003/2004 and summer 2004 are satisfactory at this stage and are at acceptable margins".