TUI Travel, Europe's biggest tour operator, said Tuesday that annual net profits rallied 62 percent, boosted by deep cost-cutting and keen demand in Britain, the Nordic region, Belgium and Canada.

Earnings after taxation hit 138 million pounds ($222 million) in the year to September 30, compared with 85 million pounds in the previous 2010-11 financial year. Pretax profits jumped 40 percent to 201 million pounds.

The London-listed holiday company added however that revenues slid 2 percent to 14.46 billion pounds, hit by unfavorable foreign exchange movements and unrest in the Middle East.

TUI Travel added that annual profits were "driven by strong performances in the UK, Nordic region, Belgium, and Canada as well as the delivery of 42 million pounds cost savings through the business improvement program."

However, it also cautioned over the outlook for the troubled holiday market in France.

"Overall trading remains positive across all our major source markets with the exception of France where the environment remains extremely challenging," TUI Travel added.

"Strong trading momentum from Summer 2012 has continued into Winter 2012-13, particularly in the UK and the Nordics, where our unique holidays are selling well and growth in our direct distribution channels continues to have a positive effect on margins.

"While still early in the booking cycle, the Summer 2013 program in the UK, Nordics and Germany is showing strong signs of growth with additional capacity in the UK and Nordics."

AFP