10:02am UK, Tuesday June 10, 2003

Tour operator First Choice Holidays has seen its first-half losses narrow and says it is confident about full-year prospects.

That comes after a strong recovery in bookings since the war in Iraq.

180 couple on beach holiday romance lovers

Targets closer

Cumulative bookings for its mainstream summer holidays were 2% below than the same period of last year compared with a 4% decline in March.

The firm has cut costs and capacity and focused on specialist holidays to weather a worldwide drop in tourism.

Bookings rising

In the six months to April 30, it made a loss before goodwill of £44.1m in the six months to April 30, compared with a £49.5m loss in the same period of the year before.

Cumulative bookings in the key UK mainstream business were 2% below the same period of last year, compared with a 4% decline in March.

Bookings have risen 15% since the beginning of May and profit margins were also up on the year.

Holiday firms have been suffering a slump in tourism since the September 2001 attacks on the US, with the global economic downturn, war in Iraq and the Sars outbreak.