Tui Group has reported an increase in turnover during the first half of the year, and said it expects growth to continue through the second half - but persistent losses mean shares in the company plunged this morning.
Turnover was up 3.3 per cent to €6.4bn (£5.4bn) from €6.2bn.
However, the travel company reported an underlying loss of €157m before interest, tax and amortisation.
The group made a loss of €0.51 per share, compared with a €0.69 loss this time last year.
Shares were down five per cent by mid-morning, making the firm the FTSE 100's biggest faller.
Why it's interesting
Tui is targeting at least 10 per cent growth in earnings in this financial year. Panmure Gordon analyst Mark Irvine-Fortescue said this growth "looks assured, but we worry about the increasing capital intensity required to generate said growth". The broker issued a "sell" recommendation.
However, Shore Capital reiterated its "buy" recommendation and said: "We continue to see the rating as attractive."
The Thomson Holidays and First Choice owner said although geopolitical risks are still weighing on the travel market - demand for trips to Turkey and Egypt was lower in the first half - its growth targets are within reach.
What Tui said
"We are continuing to deliver our transformation as the world's leading integrated tourism business, focussed on own hotel and cruise brands, with growth enabled and de-risked by our strength in distribution and direct customer relationships, and financed by our strong operating cash flows and disposal proceeds," the company said.
"Whilst the turbulent macroeconomic and geopolitical backdrop is evident in certain destinations and markets, our operational experience, integrated model and balanced portfolio of markets and destinations mean that we are well placed to deal with these challenges and continue to deliver sustainable growth into the longer term."