First Choice tie-up cuts deficit at TUI

Chief executive Michael Frenzel said bookings for the coming summer and winter seasons showed consumers are, as yet, unaffected by the credit crunch. Tourism sales were up 38% in the first three months of this year.

The group, which faced a shareholder revolt at today's annual meeting, with some investors demanding its break-up, said underlying losses shrank from 248 million euro to 196 million euro.