BRITISH bookings for holidays this summer are down by 9 per cent compared with last year, First Choice said yesterday as it reported a loss for its interim period.

First Choice, Britain's third largest package holiday company, said there was still excess capacity in the market and was "cautious" about its full year figures.

The company said a decision by Lunn Poly, the travel agent owned by rival operator, Thomson, not to sell its holidays had hit bookings for the 1996/97 season.