Europe's biggest tour operator reports reduced losses

TUI Travel is one of the world’s leading leisure travel companies TUI Travel, Europe's biggest tour operator has stated that net losses fell 17 percent in the first nine months of its financial year but the group remained weighed down by weak sales in France .
After-tax losses stood at £236 million ($362 million, 272 million euros) in the nine months to the end of June compared with the equivalent period in 2011/12.
"In France, trading remains challenging with bookings down by 22 percent," TUI Travel said in an earnings statement.
French holidaymakers are cutting back on travel to traditionally popular holiday destinations in north Africa owing to unrest in the region, notably in Egypt.
"We continue to reshape our programme with far less emphasis on north African destinations," TUI Travel said in Wednesday's statement.
TUI Travel, which in May announced plans to buy 60 of Boeing's fuel-efficient 737 MAX passenger planes, stated on Wednesday that underlying operating profit grew 3.0 percent to £76 million in the third quarter, or three months to the end of June.
"The flexibility and robustness of our business model enables us to more effectively absorb the impacts of geopolitical events," said TUI Travel chief executive Peter Long,
"Given our current position we remain very confident of achieving full year underlying operating profit growth of at least 10 percent on a constant currency basis," he added on Wednesday.
Earlier this year, rival TUI decided against a takeover offer for TUI Travel. TUI Travel was created in late 2007 from the merger of British travel group First Choice and the tourism activities of Germany's TUI.
Source: AFP