TUI AG, the German tourism and shipping company, has reported a reduction in its net loss, in the fiscal first-quarter. It has witnessed reduced administrative expenses and improvements in taxes, during the quarter.

In the last 3 months of December, 2009, the net loss was noted to be €102.8m.

TUI reported declines in all of its tourism businesses. Its bookings were reported to be lower in all travel markets. The number of hotel stays and reservations on board its luxury cruise line also, reported reduction in numbers.

"The German-speaking cruise market reflected the persistently tight economic conditions in the period. Lower bookings were recorded both in the volume market for premium cruises as well as in the niche market for luxury and expedition cruises", state the company officials.

TUI also owns 43.3% of Hamburg's Hapag-Lloyd, which is one of the world's largest marine shipping companies. Hapag-Lloyd posted a first-quarter operating loss of €21m.

"Investors appreciate that TUI has made optimistic remarks about the current tour package booking trend and the ongoing recovery of the container business", said Martina Noss, an analyst at Norddeutsche Landesbank in Hanover. She has a "hold" rating on the stock and a 7-euro target price.