TROUBLED tour group MyTravel reported colossal £910.9m losses yesterday, raising fears it may go bust.

The announcement will be of enormous concern to the newly renamed Durham Tees Valley Airport, where MyTravel is the biggest travel operator.

The group operates 20 flights a week during peak periods from the former Teesside International Airport.

MyTravel moved quickly to reassure customers that it was not on the verge of going out of business and said that all holidays were fully covered by insurance.

Chief executive Peter McHugh described the year as extremely poor, but said MyTravel had stabilised after an overhaul of prices, systems and costs.

Industry experts predict the group will have to sell off a number of planes and switch holidaymakers to charter flyers such as Monarch.

This, in turn, could see some services stopped or switched to bigger regional airports, they said.

But airport officials on Teesside will be hoping the company will not scale down services or look to move passengers to flights from other airports.

Richard Whitehouse, the airport's commercial manager, said MyTravel was a major source of revenue for the Durham Tees Valley, but played down concerns that its losses would affect its commitment to the airport.

He said: "As of yet, we have not received notification of any changes. We have asked them for reassurances, at this moment they are saying it is still as planned."

The airport does not get paid if an operator cancels a flight or reschedules it from an alternative hub.

Andrew Monk, joint chief executive with stockbrokers Oriel Securities, said: "MyTravel has got to radically change the way its business is run. It needs to get assets out of the company, wind it down and concentrate on its core business.

"It will fly a smaller, more compact field (of aeroplanes) in the future."

Mike Clarke, aviation reporter with the Travel Weekly trade publication, said: "People like MyTravel are looking more to Leeds, Bradford and Manchester."

Durham Tees Valley may try to enhance its new-found status as a hub for budget carrier bmibaby if that happens.

Mr Monk said: "The number of people going away on holidays will continue to grow because of low cost carriers. Any airport that is charter-oriented will be concerned to get more involved with the budget airlines."

MyTravel will be concerned potential holidaymakers may express concerns over its financial state by voting with their feet.

The company operates a range of brands including Going Places, which consumers may not instantly associate with MyTravel.

It also has tour operators Bridge, Tradewinds and Cresta and airline MyTravelLite.