Tui AG today reported a reduced net loss for the first quarter of its 2011 financial year, pointing to higher demand in Europe’s travel sector.
The German majority shareholder in Tui Travel still expects an increase in adjusted earnings before interest, taxes and amortization (EBITA), and a positive after-tax profit for the year.
In the seasonally low winter period, first quarter net loss narrowed to 46.4 million euros, compared with a 104 million euros net loss in the same period of the previous year.
Sales came in at 3.29 billion euros, an 11% increase on the year.
Tui AG said unrest in Egypt and Tunisia may wipe off as much as 37 million euros (£31.4 million) from second-quarter earnings.
“Despite the unrest in North Africa, the Tui group is cautiously optimistic for the rest of the year,” it said.
Tui AG said it hoped to offset the impact of protests in Egypt and Tunisia by offering more capacity to other regions as holidaymakers choose to travel elsewhere.
Tui holds a majority stake in UK-based TUI Travel and around 43.33% in container shipping company Hapag-Lloyd.