Losses at holiday giant Thomas Cook have more than halved since the struggling tour operator instituted a major turnaround plan.
However, new chief executive Harriet Green said the company was just beginning on its road back to health after it racked up a further £207 million reverse in the year to September 30.
Ms Green used an update to the markets to outline plans for a further wave of cost reductions on top of its current programme of widespread cuts that have seen it slash its network of UK travel agencies from more than 1,100 to 874 and led to around 2,500 redundancies.
The chief executive said she could not rule out further job cuts.
However, she stressed that the focus of the new plan was not on reducing its workforce.
She added that the turnaround so far had been a “great success”, with losses having reduced from £590m the previous year.
The company also returned to underlying earnings for the first time in three years in the period, posting a surplus of £13m.
The group’s UK arm delivered underlying earnings of £66 million, against largely flat results the previous year.
“No chief executive can give assurances about exact numbers of jobs, but what I can say is that Thomas Cook is back and it’s healthier,” Ms Green declared.
She added: “An enormous amount has been achieved transforming Thomas Cook, and the deliverables are clear.
“Yet the implementation of our strategy for sustainable profitable growth has only just begun.”
The group said efforts to increase online holiday bookings were paying off, with 36% of holidays now booked over the web and plans to increase the figure to more than 50% by 2015.
The company said it was also upping performance targets under the recovery plan, helped by faster-than-expected progress on slashing costs which will see it take out £340m by the end of the new financial year up from an original £315m aim.
Shares in the business, which has taken a £40m revenue hit as a result of unrest in Egypt hitting sales, leapt more than 10% in early trading as investors cheered progress on the overhaul and the prospect of further savings.
The company said that this year’s summer holiday season had seen poor demand for last-minute bookings following the summer heatwave.
However, bookings for next summer were in line with expectations.
The group, which has rebranded with a new sunny heart logo and corporate Let’s Go slogan, was on the brink of collapse before agreeing a rescue deal with its bankers in May last year.