Kuoni described the impact of financial crisis, recession, exchange rate volatility and swine flu as "dramatic" as it reported first-half losses of CHF51 million (£29 million). But the Zurich-based group still forecasts a profitable end to 2009.
The group's UK business, Kuoni UK, contributed a half-year operating profit of CHF4.8 million (£2.7 million) despite a 23.7% decline in turnover to CHF254 million (£145 million). One third of this was due to the decline in the value of sterling.
The group losses this year contrast with a CHF26.5-million profit for the same period in 2008.
Chief executive Peter Rothwell said: "The global financial and economic crisis will continue to have a negative impact. [But] I am confident the Group will post a positive operating result for 2009 as a whole."
However, he warned a flu pandemic could change the outlook and "have a negative effect on the company's profitability".
Kuoni posted a group operating loss of almost CHF49 million for the six months following a 21% fall in turnover year on year. It reported a reduction of 500 staff, but noted: "Kuoni was unable to fully offset the decline in gross profit despite major cost-cutting efforts."
The group was upbeat about current trading, however, reporting: "The UK market has been recording rising booking numbers for several weeks."
Its UK trading was just 7% down year on year to mid August by value in sterling.