TUI Travel narrows half-year losses

TUI Travel narrowed its half-year losses as revenues from unique holiday bookings and online sales grew.

The leisure travel group reported a loss before tax of £346m for the six months to March-end, a 6.0% reduction on the prior year's £367m loss.

While revenue fell 1.0% to £5.3bn, operating loss declined 9.0% to £289bn as the company benefit from a rise in average selling prices and margins and strong trading in the UK and Nordic markets.

Unique holiday bookings in the UK, Nordics an Germany increased by 15%, 11% and 9.0% respectively.

Online sales also drove results higher, accounting for 42% in the UK and 68% in the Nordics.

"Our strategy of focusing on unique holidays and putting our customers at the heart of our business continues to deliver strong growth," said Chief Executive, Peter Long.

"Given current trading and the visibility we have within our businesses we anticipate full-year underlying operating profit growth of at least 10% on a constant currency basis."

Free cash outflow improved by £233m to £774m and net debt at the end of the period came to £680m, down from £979m a year earlier.

The firm increased its dividend by 10% to 3.75p.

RD