FEARS over the future of holiday operator MyTravel were raised yesterday after the group issued its second profits warning in 18 days and prepared the City for further accounting revisions.

At one point shares in the business fell by 73 per cent, meaning that its market value has fallen by more than £1bn since the start of the year.

By the end of trading MyTravel shares had fallen 47p to 28.5p, wiping 62 per cent of its value.

The group said profits for the financial year to September 30 were likely to be a further £20m below expectations.

It also said ''potential revisions to accounting estimates'' could lead to an additional charge of between £15m and £30m.

MyTravel said it was not in breach of banking covenants and was in a strong financial position with strong cash balances.

But analysts said serious questions would be raised about its health and its future, given hefty bond repayments due at the start of 2004.

They said profits for the year to September 30 could be as little as £50m, £100m below forecasts 12 months ago.

Yesterday MyTravel said profits had been overestimated by £12m in its UK business in September while a further £8m had been booked in twice.

These mistakes would lead to a £20m profit downgrade and the accounting revisions could also see a further hit.