TUI Travel sees uplift in summer bookings

HOLIDAY company TUI Travel said year-on-year summer bookings were well ahead of 2010 and that its first-quarter operating profit was more than £20m ahead of the same period last year.

By The Newsroom

Published 27th Jan 2011, 08:49 BST

"The underlying operating result improved by over 20m in the first quarter of the financial year... driven by continued turnaround progress, particularly in Canada, and improved trading," the company said in a statement.

"Trading for Summer 2011 is good across all regions. This has been driven by strong demand for our differentiated holidays."

Europe's biggest travel company said overall bookings for summer 2011 were up between eight and 16 per cent in its key markets, but that its remains cautious given the uncertain economic and geopolitical environment.

The company, formed in 2007 through a tie-up between the travel division of Germany's TUI and Britain's First Choice, said a further 40m of cost savings could be made at its UK business and central functions.

TUI Travel said it was confident its plan to deliver an 89m turnaround of its underperforming businesses by 2013 would succeed.