Troubled tour operator MyTravel struck a crucial deal with its banks yesterday to secure its financial future for at least another year.

The former Airtours group has won an extension to a £250m credit facility due to expire in March after a series of frantic talks.

The deal meant the Manchester-based business could publish final results bearing the scars of a disastrous year.

After one-off charges the group ran up losses of £72.8m in the 12 months to September 30 against profits of £62.3m a year ago.

Chairman David Crossland said: "MyTravel has gone through the worst year in its history. The group's performance has been unacceptable."

MyTravel has issued three profit warnings since May as internal problems and the fall-out from the September 11 terror attacks plunged the business into crisis.

It stunned analysts last month by issuing two in just 18 days, revealing a potential £30m black-hole in its accounts.

Previous chief executive Tim Byrne stepped down last month and yesterday MyTravel said finance director David Jardine was leaving "with immediate effect".

It added that current booking trends were encouraging, particularly in the UK, where it expects a "significant turnaround" in the business.

Chief executive Peter McHugh said: "We have sufficient cash without selling any assets to get through the year."

MyTravel's shares have plummeted on the back of its fall from grace, tumbling from 245p a year ago to just 14.75p. They were up 2p to 32p yesterday.