Q1 operating loss declines by 15 per cent at TUI Travel

FTSE 100 listed leisure travel company TUI Travel has reported an operating loss of 93m pounds in the first quarter of fiscal year 2013, 15 per cent less than the loss recorded in the corresponding period a year earlier.

A financial update issued by the company showed that the operating loss had contracted to £93m from £109m in the first quarter of the fiscal year 2012, representing the three months to December 31st.

The company reported continued growth in UK cumulative market shares with Summer 2013 up 4.0% and the January booking period up 2.0%, gaining on the 7.0% increase in the same period last year.

Demand for the Nordic market buoyantOutperformance was reported in the UK and Nordic markets with unique holiday bookings in the UK, Nordics and Germany increasing by 15%, 10% and 6.0% year-on-year respectively for Summer 2013.

Direct distribution sales in the UK and Nordics for Summer 2013 were valued at 90% and 85% respectively, with online sales accounting for 37% and 65% respectively.

Peter Long, Chief Executive of TUI Travel, said: "We are pleased to report that our strong trading momentum has continued with particularly encouraging growth in the UK and Nordics. Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays. Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.

"We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7.0 to 10% underlying operating profit growth for the 2013 financial year."

MF