(MENAFN- ProactiveInvestors - UK) Tour operator TUI (LON:TUI) reported a hit from geopolitical uncertainty but said it had still done well in the first quarter.
TUI said it had a good performance in the first quarter with a 7.2% improvement in underlying pre-tax earnings despite political turbulence in some of its destinations.
The group added it was evidentthere had been a significant shift in demand away from Turkey with summer 2016 bookings to that destination down about 40% at the moment but it had been able to move quickly to switch focus to alternative profitable destinations such as Spain and the Canaries.
It revealed it was still expecting growth in underlying pre-tax earnings before interest and amortisation of at least 10% in 2015/16.
Current trading for winter 2015/16 and summer 2016 remained in line with its expectations taking into account the geopolitical backdrop.
Winter 2015/16 was 82% sold to date with bookings at a similar level to last year and average selling prices up 3%.
Summer 2016 was in line with its expectations at this early stage with 33% sold to date overall volumes up 1% and average selling prices up 2%.
It also said it had saved10mln in relation to corporate streamlining and destination services in the quarter.
Group underlying pre-tax losses for the quarter improved to 102mln from 105mln a year ago or a 97mln loss excluding the negative impact of foreign exchange translation.
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