TUI Group has released its first set of quarterly results since the merger of TUI AG and TUI Travel last year, revealing it narrowed losses in the first quarter.

The world’s largest travel group said underlying operating losses were reduced by €33 million to €108 million, when compared to the same period of last year.

This equated to a 15 per cent improvement in the underlying operating result, excluding €16 million profit on sale of Riu Waikiki within TUI Hotels & Resorts, and €4 million adverse foreign exchange translation.

TUI Group added it was on track for earnings of around €1 billion in the current financial year.

Chief executives of TUI Group, Friedrich Joussen and Peter Long, commented: “We are delighted to announce our first set of results as TUI Group, having delivered 15 per cent improvement in the underlying operating result.

“This reflects a significant increase in profitability in Hotels & Resorts and Cruises.

“We have continued to grow unique holidays and online bookings across all key source markets and expect to deliver growth in the underlying operating result in the remainder of the year.”

Following completion of the merger between TUI AG and TUI Travel PLC in December 2014, integration is underway.

TUI Group reported a first-quarter underlying loss before interest, tax, and amortisation of €107.9 million, against a restated loss of €141.1 million for the previous year.

Sales rose 5.4 per cent to €3.54 billion.

The company affirmed a target for underlying EBITA to rise by between 10 and 15 per cent at constant currencies this year, from €869 million a year earlier.