Tui Travel reported an increase in losses for the six months to the end of March despite reporting “a strong performance” in the UK where it continues to outperform the market.
Europe’s biggest travel group reported a 3% increase in underlying losses of £317 million across all markets on a 5% rise in revenue year on year to £5,447 million.
However, the company’s statutory losses for the period rose by about one third year on year to £457 million.
Tui Travel chief executive Peter Long said: “We are pleased with our overall performance. The UK delivered a strong winter performance which attests to our focus on differentiated and exclusive product.
“Our outperformance in this market is continuing into the summer and we will ensure we continue to optimise our position.”
Long said: “We continue to deliver healthy growth in our online accommodation-only businesses, driven by new markets.” But he added: ”We remain cautious. However, overall trading performance continues to be in line with expectations.”
The group reported UK bookings for this summer down 6% on a year ago at the end of April, in line with reduced capacity, but with the average selling price up 9% year on year.
Sales for the winter just ended were down 7% year on year but with a 9% reduction in capacity and average selling prices up 4%.
Tui Travel reported: “The lates market contributed to the strong UK trading during the second quarter.” It said almost half of UK winter bookings were made online, up eight percentage points on last winter.