Political unrest in Egypt saw Thomas Cook suffer a £15 million revenue hit in the three months to December 31.
The group said lower customer demand for winter holidays to the country offset improvements in capacity management and new product growth.
Revenue for the quarter was down from £1,671 million to £1,656 million as a result.
Excluding Egypt, first quarter revenue grew by 4.1% compared with the same period in the previous year, Cook reported this morning.
Cook saw overall winter losses for the three months narrow by £10 million to £56 million.
Underlying profit for the 12 months to December 31 was up by £72 million to £274 million. Net debt was cut by by £273 million to £1,286 million.
Cook revealed that the number of holidays booked online had risen to 36% from 34% in 2012.
“Significant progress” is being made to integrate web platforms and enhance content to enable increased online penetration and achieve a target of more than 50% online by 2015.
Half of all web site visits to thomascook.com were from a mobile device, with total searches up 60%.
Cook’s UK and Northern European web sites experienced their highest ever traffic in a day.
Summer bookings at Cook’s Concept hotels have increased by 42% to 252,518 compared with the same period last year while summer city break bookings are up by 12% to 152,275.
Cook’s exclusive hotel portfolio continues to grow rapidly with 136 new properties so far this year as the company remains on target to achieve 640 by next year.
CEO Harriet Green said: “I am pleased to report further rapid progress delivering our strategy for sustainable profitable growth.
“Q1 underlying EBIT improved by £10 million to £(56) million. On a last 12 months basis, to place the quarter in an annual context and reconcile with our targets, underlying EBIT is up 36% to £274 million.
“Our Q1 results, new product revenue growth, web integration, cost out and profit improvement programmes combined with an intense business focus and financial discipline, all underpinned by the Thomas Cook Business System, give us confidence of achieving our targets and delivering even more value in the years to come.”