Tour operator TUI Q3 losses deepen
Leading European tourism operator TUI Travel posted Thursday a steep drop in quarterly net profit owing to unrest in North Africa, foreign exchange effects and high fuel prices.
TUI said it had a third quarter net loss of 39.6 million euros ($56.4 million), compared with a loss of 12.2 million euros in the same three months to June period a year earlier.
The group said that losses in the northern hemisphere's spring were typical.
It also noted that events in North Africa -- popular unrest and an uprising in Libya -- in particular "have continued to impact significantly on trading for our French tour operators" Marmara and Nouvelles Frontieres.
TUI also was hit by poor results at container shipping company Hapag Lloyd, of which TUI owns 38.4 percent that it is trying to sell, with this unit hit by a weak dollar and higher fuel costs.
TUI total sales in the quarter rose 9.3 percent to 4.39 billion euros.
The group and a consortium of Hamburg-based investors had hoped to list Hapag Lloyd on the stock exchange this year but that operation has been postponed indefinitely.
TUI is now looking to sell its stake as a bloc, if a buyer can be found.
© 2011 AFP