German travel and tourism group TUI reported first-quarter results that beat expectations, helped by the performance of Europe's largest tour operator TUI Travel and better profitability at its hotel business.
The group, which holds a 56 percent stake in TUI Travel, reported an underlying first-quarter loss before interest, taxes and amortization of EUR€141.5 million (USD$191 million), an improvement over last year's EUR€147.3 million loss.
TUI caused a stir in the travel industry when it was revealed in January that it had approached TUI Travel over a possible nil-premium, all-share merger. But the German group decided against making a bid, saying it was not in shareholders' best interests at current share prices.
TUI Travel reported first-quarter results last week and said more Europeans were booking all-inclusive holidays to make the best use of dwindling incomes.
Along with TUI Travel, TUI also operates its own hotels and cruise business.