Europe's biggest travel firm, TUI Travel said yesterday its key summer holiday bookings remained strong across the group and it was on track to hit this year's profit forecasts and merger cost-saving targets.

TUI Travel, created last year from a tie-up of TUI's travel division and First Choice, said its underlying loss before tax in the three months to end December narrowed by 5O per cent to £60 million.

It said despite cutting back the number of breaks it offered, sales in the UK and Scandinavia were up nine per cent compared with the same stage last year, boosted by trips to more exotic, far-off destinations.

In Germany, Switzerland and Austria summer sales were up six per cent while sales from France, Belgium and Netherlands rose four per cent.

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