First Choice is introducing more specialist holidays

For the six months to 30 April, traditionally a quiet period ahead of the main summer season, pre-tax losses fell to �50.9m, from �55.1m last year.

First Choice said growth in specialist sales helped to offset tough conditions in the mainstream package market.

The company said earlier this year it would be discontinuing package holidays to Spain's Costa Brava.

Half-year turnover was �7.8bn, compared with �7.6bn last year.

"We have again demonstrated the strength of our business by delivering reduced first half losses against the background of a changing and challenging mainstream holidays marketplace," said First Choice chief executive Peter Long.