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TUI shrugs off Egypt unrest, narrows losses

TUI shrugs off Egypt unrest, narrows losses

TUI Travel has released financial results for the six months to March 31st revealing the tour operator minimised the impact of the unrest in the Middle East and narrowed losses overall.

The FTSE 100 giant – which is majority owned by TUI AG of Germany – confirmed it lost £29 million over six months due to the Arab Spring, less than the expected £30 million.

Overall TUI Travel lost £307 million during the period, compared with a £322 million loss in the comparable 2009/10 period.

Despite this, the tour operator maintains it is on course to meet 2011 expectations, with a focus now on alternative destinations.

Net debt was also reduced by £171 million following continued focus on cash flow initiatives.

“I am pleased to report an improved first half operating result, particularly given the significant headwinds from political events in Egypt and Tunisia, the weak UK economic environment and the shift of the Easter peak period from quarter two to quarter three this year,” said Peter Long, chief executive of TUI Travel.

“This result demonstrates our continued success in turning around underperforming businesses and shows the strength of our differentiated products which have allowed us to outperform the market.”

TUI Travel shares, which were down 13 per cent since January, were up 0.6 per cent to 245.1 pence at 07:30.

Yesterday Thomas Cook issued a similarly upbeat set of results, suggesting the industry may now be on a path toward recovery.