TROUBLED holiday operator MyTravel Group plc is targeting an operating profit for all three of its divisions in 2006.

At its annual shareholder meeting, the company said all three had performed in line with its expectations for the winter and they were encouraged by summer bookings.

In a statement it added: "Overall, the board continues to believe that we will be able to achieve our business plan for the year."

MyTravel, which employs around 300 at call centres in Accrington and Haslingden, also put forward proposals to reorganise its share capital at the AGM.

It would mean changing its existing two-tier share classifications into a single share category. The proposals were "overwhelmingly" approved by shareholders.

It follows last December's decision by shareholders to approve a restructuring plan transferring 96 per cent of the firm to creditors and wiping off debts of £800million.

MyTravel said it now intends to match industry-wide profit margins of 3.5 per cent at its stricken UK arm by 2007.

But the company warned that while it had hedged its fuel requirements for the current financial year, oil prices threatened to crimp earnings further ahead if they remained at near-record levels.

MyTravel also said the Asian tsunami disaster would wipe around £12million off earnings in the current fiscal year to end in October.

MyTravel, formerly known as Airtours, came close to collapse after a sharp downturn in overseas travel following the September 11 attacks in 2001.

And its woes were compounded in 2002 by accounting errors and growing competition from low-cost airlines.