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Travel company Thomas Cook has insisted that it remains a "robust" business, despite posting a first-half loss in the wake of planned job losses.

Yesterday the holiday group warned that up to 2,800 jobs would be lost following its £2.8-billion merger with MyTravel last week.

But the company, which is seeking to cut costs, stressed in a separate statement today that the combined group had reduced its pre-tax loss in the six months to April by eight per cent to €293 million (£197 million).

Thomas Cook said the reduction had been achieved despite "challenging conditions" in a number of the markets in which it operates.

In the UK, the company warned that trading conditions remain difficult for the summer.

Capacity on holidays and flights has subsequently been cut by five per cent this year, with cumulative bookings also down five per cent on last year.

Although Thomas Cook has sold 74 per cent of its capacity in line with the previous year, selling prices have remained flat.

Nonetheless, the company said that in the absence of "significant adverse events" it expected trading conditions in the UK to be "significantly improved" over the remainder of the summer season.

A financial performance in line with expectations is subsequently expected to be achieved by the travel firm for the full year.

Thomas Cook group joint chief executive Manny Fontenla Novoa remained upbeat about the company's prospects in light of its merger with MyTravel, with today's statement declaring that "excellent progress" has been made in integrating the two companies.

"Thomas Cook Group plc is a robust business which is well placed strategically to take advantage of the significant opportunities for growth," he said.

"The merger has created a very strong platform for us to compete in an increasingly diverse, growing and international travel market, bringing together complementary brands and increased geographic reach."