Travel company TUI Group (LON:TUI) maintained its full year guidance as it narrowed its second quarter loss on the back of strong demand for cruises.
The underlying loss before interest, tax and amortisation at constant currencies shrunk to €125mln in the quarter from €154mln the previous year.
Turnover rose by 6.3% to €3.26bn from €3.07bn as growth in the cruises and holidays to the northern and central European regions offset declines in hotels and resorts, and the holiday and destination experiences divisions.
READ: TUI narrows loss as strong demand for holiday packages lifts revenue
The company expanded its capacity in cruises during the period and has received approval for the construction of a third ship for its Hapag-Lloyd cruise business.
TUI said it is continuing to see more tourists venture outside popular destination Spain for their holidays and go to Turkey and North Africa following a subdued period while demand for trips to Greece remains strong.
Summer trading is “progressing well” with 59% of its programme sold in line with last year, TUI added. Spain remains the most popular destination by customer volume for sales and marketing but growth was driven by Turkey, North Africa and Greece.
TUI said it is on track to deliver at least 10% underlying EBITA growth in fiscal year 2018.