Tourism group TUI cuts Q1 net loss
German tourism group TUI said Wednesday it cut net losses by more than half in the first quarter of its 2010/2011 fiscal year and maintained its full year-target despite unrest in Egypt and Tunisia.
For the three months that ended on December 31, TUI posted a net loss of 46.4 million euros ($63.3 million), compared with a loss of 104 million euros in the first quarter of the group's 2009/2010 fiscal year, a statement said.
TUI said it remained "cautiously optimistic for the further course of the year," despite the troubles in North Africa, and still expected "a slight year-on-year increase in operating earnings and a positive group (net) result."
Second quarter results will however be affected by events in Egypt and Tunisia, and the group's British unit TUI Travel anticipates a charge of between 29 and 35 million euros in relation to them, the statement said.
On Tuesday, the travel operator extended its suspension of all trips to those two countries, TUI's seventh and 10th biggest destinations respectively, until the end of February.
First quarter sales gained 11 percent to 3.3 billion euros meanwhile, and the group's loss in core earnings fell to 120 million euros from 144 million in the same period a year earlier.
TUI underscored "improvements in the operating performance" of its three main sectors, travel, hotels and cruises.
The company also owns 43 percent of the container shipping firm Hapag-Lloyd, where activity expanded in the first quarter owing to a pick-up in maritime trade.
© 2011 AFP