Club Med reports six-month operating loss

PARIS -- Club Mediterranee reported an operating loss of $3.8 million for the first six months of the fiscal year, spanning November to April.

The company attributed its 13.9% reduction in capacity through village closings as one of the factors that enabled it to nearly break even. Year-over-year reservations were down 14% as of June 9.

In the U.S., Club Med cited increasing distribution via access to GDS systems as one of the factors that should enable it to break even by 2004.

An agreement with a European group is likely to be announced, the company added, "with the goal of reinforcing the idea of belonging to a club."

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