On 26 February Jetset Travelworld reported its net profit for the six months to 31 December 2012, with less than impressive results. 

The company’s net profit for the period was $8.6 million, which is a 22.9 percent decline on the $11.2 million it reportedly earned in the previous corresponding period.

In response, the company plans to introduce a number of cost-cutting measures to remedy the situation and it said it has already reduced costs by 10 percent, reports InsideRetail.

Jetset has also been working on a “major business transformation” since September 2012.

It is believed the drop in average fare prices and a decrease in government spending on travel have both contributed to the company’s poor performance.

Rob Gurney, CEO, Jetset said the company is actively working to improve its financial standing. 

“Whilst a number of cost-reduction initiatives will continue to be pursued, the significant transformational initiatives are still in their infancy, and the full cost and timing of implementation is being developed,” he said.