German travel company TUI 1st quarter net loss narrows 12 percent
By: GEORGE FREY
Associated Press
02/15/10 5:07 AM EST
FRANKFURT — Germany's TUI AG narrowed its fiscal first quarter net loss by 12 percent, largely due to lower administrative and tax costs, the travel and marine shipping company said Monday.
TUI, based in Hanover, said it lost euro165 million ($224 million), compared with a net loss of euro187 million in the October-December period of 2008.
Revenue at its main tourism division fell 15 percent to nearly euro3 billion from euro3.5 billion in the fiscal first quarter of 2008.
However, the company said it remains confident for the remainder of the year and expects some operating earnings to improve slightly. The company did not provide details on taxes or cost savings.
The company reported declines in all tourism businesses due to the economic downturn, which had not yet affected the comparative year-ago quarter.
Bookings were lower in all travel markets, as were the number of hotel stays and reservations on board its luxury cruise line, TUI said.
"The German-speaking cruise market reflected the persistently tight economic conditions in the period under review. Lower bookings were recorded both in the volume market for premium cruises as well as in the niche market for luxury and expedition cruises," TUI said in its report.
TUI also owns 43 percent of Hamburg's Hapag-Lloyd, one of the world's largest marine shipping companies.
Hapag-Lloyd's first quarter operating loss was euro21 million, worse than an operating loss of euro8 million in the first quarter of 2008, but still a substantial improvement from the fourth quarter.
Hapag-Lloyd's declines contributed euro14 million in net losses to the TUI group for the quarter.
The unit's first quarter revenue fell 28 percent to euro1.2 billion from euro1.6 billion as a result of a 13 percent decline in transport volumes and a 16 percent decline in freight rates. Despite the declines, TUI said it was able to increase shipping rates in some areas.
Shares of TUI were about 4.5 percent higher at euro6.70 in Frankfurt morning trading.
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