TUI AG, the German owner of Europe’s largest travel company, reported a narrower first-quarter loss on lower administration costs following the partial disposal of the Hapag-Lloyd container line.

The net loss was 103 million euros ($134 million), or 43 cents a share, in the three months through December, compared with 155 million euros, or 64 cents, a year earlier, the Hanover, Germany-based company said in an e-mailed statement. Sales fell 15 percent to 2.95 billion euros.
TUI’s administration expenses were reduced to 313 million euros from 362 million euros a year earlier after the sale of its majority in Hapag.
TUI also paid less for debt because it had receipts from the sale of 57 percent of the container line.
The loss before interest, taxes and amortization at Hapag widened to 21 million euros from 8 million euros. Still, the container line’s operating earnings improved by 219 million euros from the previous quarter, TUI said.
The recession and a glut of new vessels last year led to a slump in freight rates.
(Source: Bloomberg)