TUI Travel reports loss increase for first half year

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Europe’s largest travel company, TUI Travel, released its results for the first half of its financial year on Tuesday, noting that its operating loss for the period widened by 15 percent, which reflects both the effect of exchange rate movements and weaker trading in both Canada and France.

The travel group was created in 2007 through the joining up of the travel division of TUI AG and the UK travel company First Choice. For the six month period ending 31 March, the company posted an underlying operating loss of 289 million pounds, as compared with a loss of 250 million pounds for the same period last year.

TUI Travel’s performance was slightly better than analyst expectations of a loss in the range of 294-295 million pounds, which Reuters learned of in a recent poll.

Traditionally, travel operators report losses during the first six months of the year, as results do not include profits made during the critical summer holiday period.

TUI Travel, which is 51-per cent owned by TUI AG, has indicated that it is still on track to meet full-year expectations.

The forecast for the travel company’s full-year underlying operating profit is 435 million pounds, which remains the consensus of the 16 analysts recently polled by Reuters.

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