TUI Travel Reports Half-Year Operating Loss of $446 Million

TUI Travel, the British travel conglomerate, reported an operating loss of approximately $446 million for the six months ended March 31. In comparison, TUI Travel’s operating loss was $386 million a year earlier.

TUI said the devaluation of the pound as well as the late April timing of Easter this year contributed to the loss. The weakness of the pound against the euro and the dollar increased the company’s underlying operating loss by $46 million, the company reported.

TUI Travel also reported an increase in cancellations to Mexico following the H1N1 flu outbreak, but said that most customers either rebooked an alternate destination or delayed their departure date.

Of the 2,500 TUI Travel customers from the U.K. who were in Mexico at the time of the outbreak, about 10 percent took TUI up on its offer to bring them home early. Overall, the company cited improvements in demand in February and March, despite ongoing economic weakness.