TUI Travel suffers annual net loss

European travel firm TUI Travel said on Thursday it had made an annual net loss of almost 271 million pounds (324 million euros, 418 million dollars), mainly on costs linked to the creation of the new company.

TUI Travel was born in late 2007 following the merger of British travel group First Choice and the tourism activities of German travel giant TUI.

TUI Travel added on Thursday that underlying operating profits jumped 53 percent to 398 million pounds in 2007/08 -- a figure the group described as "excellent" in an earnings statement.

"We are delighted that in our first year as a merged company we have achieved significantly improved profitability across the business," said TUI Travel chief executive Peter Long.

"The integration is progressing well and we are now targeting 175 million pounds of synergies, which is 25 million pounds higher than our previous target.

"Our customers continue to regard their main holiday as an essential, not a luxury, which they are reluctant to forgo" during an economic downturn, added Long.

Source: Yahoo News