First Choice notches profits record

Tour operator First Choice posted record annual profits today despite a year that saw the travel industry hit by events including the Asian tsunami, Hurricane Katrina and terrorist attacks.

The group, whose brands include Unijet, Falcon and Sovereign, said pre-tax profit before one-off items rose 16% to £114m (€168m), after turnover rose 11% to £2.58bn (€3.8bn).

First Choice also announced it had bought upmarket US-based travel group Grand Expeditions for £54m (€80m) and had agreed to buy another US-based travel firm, Intrav for £37m (€55m).

First Choice said current trading was strong though sales in its specialist holidays business were down 8% this winter, partly because holidaymakers appeared reluctant to visit areas affected by the tsunami.