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Last Updated: Wednesday, 22 March 2006, 11:50 GMT
French riots hurt travel company
French riot police during a disturbance in Paris last November
The riots spread to cities across France
Last year's riots across France have hurt the annual results of German travel company TUI.

Releasing its 2005 figures, TUI said the disturbances led to a reduction in business at its French tour operations and Paris-based airline Corsair.

This contributed to its Western Europe tourism unit posting an EBTA (adjusted earnings before tax and amortisation) loss of 10m euros ($10m; 7m).

In 2004, the same division made a profit of 40m euros.

New student riots

"The socio-political unrest at the end of the year affected our French tour operators and our airline Corsair much more than expected," said TUI chief executive Michael Frenzel.

"Due to the riots in the French suburbs, bookings in France continued to decline in an already weak market."

TUI's overall annual EBTA dropped 9% to 486m euros, beating market forecasts of 521m euros.

Group sales rose 8.7% to 19.6bn euros, again beating predictions.

The riots in France during October and November were sparked by discontent among young Muslims and other ethnic minorities, angry at perceived racism and lack of opportunities within French society.

Mr Frenzel made no comment about the latest unrest in France involving students angry at proposed changes to French labour laws.

Yet he added that he was confident the firm's French marketplace "will recover and return to positive earnings soon".


SEE ALSO:
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22 Aug 05 |  Business
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