Trading is remaining encouraging as the UK demand for leisure travel remains strong, TUI Travel has revealed in its latest trading statement.

The TUI travel board said it is satisfied that both the First Choice and TUI Tourism business will meet their expectations for the 2007 financial year ends.

UK mainstream trading has seen sales up 7% and margins ahead of last year.

First Choice continues to benefit from remixing its programme to medium-haul and long-haul with sales up 24% and 22% respectively, driven by consumer demand for Egypt, Tunisia, Mexico and the Dominican Republic.

Thomson sales are up 3% with 7% lower volumes on a capacity reduced by 11%.

As part of its post merger 100 day review the company is exiting unprofitable lines of business for Summer 2008.