TUI
has reported a drop in profits of 53.6% to £59 million for its Northern Europe
division, which includes the UK, in its 2002 full-year results.

This
compares to £127.4 million in 2001.

The
group said the Iraq crisis had a “strong adverse impact” on the
performance of the Tourism Division in the first few months of the fiscal year.
Sales booked in the Group as a whole for summer 2003 are down 15% on 2002.

“Unless there is substantial pent-up demand, TUI
AG expects its 2003 profit in tourism will be lower than in 2002,” a
statement said.