Switzerland's largest travel group Kuoni saw its first half net profit slump 90 per cent lower to SFr2.9 million ($1.72 million). The sharp reduction in losses was due mainly to losses in its Scandinavian operation.

Kuoni said on Wednesday that it expected results in the second half of 2001 to be only slightly below last year's levels, but said that "the setback experienced in the first six months means that the figures for the year as a whole will not be as good as those for the previous year".

Kuoni was dogged over the first six months of the year by a bitter boardroom row that saw its chairman, Daniel Affolter, booted from his post in June.

Analysts had expected a first half net loss of between SFr3 million and SFr11 million. Kuoni had warned in July that full year results would be clearly lower than in 2000.

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