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TUI post-merger synergies

February 10, 2015

German tourism and travel giant TUI Group has reported a narrowing of its losses in the first quarter of its fiscal year running from October to September. It issued a positive outlook after the merger with TUI Travel.

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TUI Logo Photo: Rainer Jensen/dpa
Image: picture-alliance/dpa

TUI Group said Tuesday its net loss in the three months to December amounted to 104.6 million euros ($118.5 million), down from minus 109.8 million in the same quarter a year earlier.

The world's largest leisure tourism group added Q1 sales were up by 5.4 percent to total 3.54 billion euros.

"TUI delivered a good start to the year," Chief Executives Friedrich Joussen and Peter Long said in a statement, adding the results reflected "a significant increase in profitability in hotels and resorts and cruises."

Post-merger impact

The company maintained it was on track for earnings of around 1 billion euros in the current financial year.

TUI Group was formed in December by the merger of London-listed TUI Travel and German majority owner TUI AG. The firm said Tuesday that first synergies from the fusion would become visible in the course of the year, with great emphasis being placed on streamlining airline operations currently comprised of six brands, including TUIfly and Thomson Airways.

The company added it would also aim to ensure greater cooperation between its units Thomson Cruises and TUI Cruises.

While posting profits in the hotels and cruises divisions, TUI Group's travel sector reported a wider loss of 149.1 million euros on adverse currency effects and declines in business operations in Germany and Nordic countries.

hg/uhe (Reuters, dpa)