TUI Travel posts £317m loss but on track to meet full-year forecast
The world's largest tour group said it was on track to deliver a strong performance in its key summer trading period
By CFO World staff | CFO UK | Published 10:35, 08 May 12
TUI Travel said on Tuesday the group made a operating loss of £317 million in the half year to end of March but said it was on track to meet full-year forecasts.
The world's biggest tour operator however said that it expected to deliver a strong performance in its key summer trading period.
The group, which owns Thomson and First Choice, recorded a rise in first half revenues of 5 percent to £5.44 billion. The group said overall trading for summer 2012 was good with booking volumes well ahead of last year.
Tour operators traditionally make a loss in the first half of the year, which does not include the key summer period.
"We have seen improved summer 2012 trading performance in all other mainstream markets except France which remains difficult," TUI Travel chief executive Peter Long said.
"Given the challenging economic environment, we remain cautious, however, overall trading performance continues to be in line with the board's expectations."
TUI Travel has benefited from difficulties experienced by main rival Thomas Cook , which issued a string of profit warnings last year before securing a three-year funding lifeline worth £1.4 billion last week.
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