HANOVER, Germany, Jan. 24 (UPI) -- Despite a slump in sales during the winter season, one of Germany's leading tourism services groups reported that its earnings should continue to grow this year in spite of the downturn in tourism since Sept. 11.
Preussag's bullish prospects contrast sharply with those of other tourism-oriented companies across Europe, which have suffered from a sharp decline in travelers since the terrorist attacks, and the subsequent reluctance for people to travel far from home.
In fact, Preussag AG said Wednesday that holiday bookings for this summer are currently at lower levels compared to the same time last year. Yet, January's sales are actually higher compared to a year ago, said Preussag's executive board chairman, Michael Frenzel.
By slashing operational costs by 80 million euros ($70.16 million) in addition to the cuts totaling 40 million euros ($35 million) since November, the company is expecting this year's revenue to remain solid. The company did not, however, reveal its targeted earnings for the full year.
It will also cut costs by pulling its British operations as well as all its airlines under the single Preussag umbrella.
As a result, Preussag's board members proposed that the company keep its dividend of 77 cents per share for now.
