European tour behemoth TUI Travel said underlying operating loss for its fiscal first quarter was approximately $173 million, compared with a $137 million loss a year earlier, “principally driven by lower demand for North African destinations.”
TUI reported revenue of $4.5 billion, a 5% increase over the $4.3 billion it reported a year earlier.
TUI’s Specialist & Activity division, which houses most of the company’s U.S. tour operator brands, reported an underlying operating loss of about $24 million, compared with an approximate $14 million operating loss a year earlier.
Results in the division were adversely affected by poor snow conditions at ski resorts in October and November, which have since improved, the company stated.
The division also saw weakness in its educational and student brands due to the challenging economic climate and its adventure brands, which saw lower demand for North Africa and Australia (the latter due to the strong Australian dollar, according to TUI).
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