Britain's First Choice Holidays said today that trading for its summer season was as expected.
Summer holiday sales at First Choice's mainstream business are up 2 per cent on volumes down 2 per cent, as the increasing popularity of long-haul destinations offset a decline in the short-haul market.
First Choice said: "The rise in air passenger duty, year-on-year increases in fuel costs and our investment in two additional long-haul aircraft for the summer season will as expected result in lower margins for winter 06/07."
Long-haul summer holiday sales were up 23 per cent, while short-haul sales fell 9 per cent, and medium-haul sales were flat, with strong demand for Turkey and Greece.
Tour operators have been struggling with the growing challenge from low-cost airlines and the Internet.
