TUI Travel Makes Product Cuts

TUI Travel PLC is cutting the number of vacation packages it offers in the U.K. by 15 percent and in Germany by 6 percent for summer 2009, the company said in its earnings report for the quarter ended June 30. Still, Long said he is confident that TUI Travel will meet the board’s expectations for 2008 and 2009.

Quarterly revenue increased 9 percent to about $6.8 billion, compared with about $6.2 billion a year earlier. The company reported an operating profit of about $122.1 million for the quarter, compared with about $87.7 million a year earlier.

For the nine months ended June 30, TUI Travel’s net loss widened to about $963.6 million, compared with a $626.1 million loss for the first nine months of the previous year. TUI Travel said it is well hedged for fuel and foreign exchange into summer 2009.