TUI Travel losses deepen

TUI Travel, Europe's biggest tour operator, said Thursday that net losses widened in the nine months to June, hit by the earlier Easter holiday, rising costs and the poor performance of its French business. The firm said its loss after tax for the reporting period to June 30 grew 7.5 percent to £284 million. TUI had recorded a net loss of £264 million in the equivalent part of the group's 2010/11 financial year. Revenues slid two percent to £3.7 billion. TUI Travel also warned that fuel prices, which comprise about one-tenth of its costs, were set to continue rising by about ten percent next year. The group has also been hampered by the impact of the eurozone debt crisis and ongoing unrest in the Middle East and North Africa. "We remain confident in the flexibility and resilience of our business model that has enabled us to absorb the impact from a turbulent Greek political and economic situation as well as the continued weakness of North African destinations," TUI Travel said in its earnings statement. "We are pleased with the development of trading since our last update, with the exception of France where we continue to take actions to deliver our turnaround plan." On a more upbeat note, TUI Travel noted that its sports division had been boosted by sales of packages and tickets to the London 2012 Olympics, which end on Sunday.