TUI HURT AS TRAVELLERS GO FOR TURKISH DELIGHT

HOLIDAY firm Tui racked up half-year losses of £261m as British families ditched Spain for breaks in Turkey.

The Anglo-German company pinned its hopes on travellers flocking to Spain, but they are now heading back to cheaper Turkey, having stayed away recently amid terrorism fears.

Tui is also feeling the effects of last year’s heatwave, which forced firms to cut prices to tempt holidaymakers abroad. Chief executive Fritz Joussen said: ‘All markets are suffering competitive pressure. The main issue is over-capacities of airlines into Spain.

‘That is putting pressure into the system. This will be a trend which will be continuing also into the second half of the year.’

Tui said it needs clarity over the status of its 15 grounded 737 Max planes by the end of May or it will take another hit to profits. And it did not rule out cancelling eight jets it has on order from Boeing.

Its first-half loss widened from £148m the year before as bookings in its package holiday and airlines business fell by 3pc for this summer.

Turnover rose 1.7pc to £5.8bn, bolstered by strong sales in its hotels and cruise ships business.