A slump in demand for holidays to North Africa combined with 'downbeat consumer sentiment', especially in the UK, hit Kuoni's sales in the first half of the year.
Turnover in the UK and Benelux countries fell from 270 million Swiss francs (£205m) to 237 million (£180.7m).
However, cost savings made within the Group ensured the operating loss of 2.2 million Swiss francs (£1.68m) was no higher than for the same period last year.
Overall, the Kuoni Group reduced its half-year loss by 300,000 Swiss francs to 1.5 million following a 19% increase in sales to 2.08 billion Swiss francs.
The Scandinavian markets grew 4.5 % and VFS Global , which specializes in consular visa services, saw turnover increase by 23.3 % to 90 million Swiss francs.
Chief executive Peter Rothwell said: "I’m very pleased in particular with the strong growth in the Destinations Division, in VFS Global, and in Scandinavia.”
Profits for the full year are expected to be in line with 2010.
By Linsey McNeill
