Tui Travel helps put parent firm on an even keel

 
Marion Dakers
TUI Travel’s growing holiday sales have helped parent firm Tui AG beat quarterly forecasts and pare losses.

The German firm, which holds 56 per cent of FTSE 100-listed Tui Travel, said yesterday its turnover rose 1.4 per cent on last year to €3.5bn (£3bn), or flat excluding currency changes, in the first financial quarter.

It posted an underlying loss of €141m, four per cent better than a year ago.

Tui AG, which dramatically started and then called off merger talks with Tui Travel last month, said the UK firm had delivered a “sound operating performance”.

Tui Travel reported first-quarter results last week and said more Europeans were booking all-inclusive holidays to make the best use of dwindling incomes.

Yesterday Tui AG said its cruises business was delivering “substantial growth”, with revenues up from €40m last year to €51m, though operating losses widened to €11m due to spending on expansion.