Holiday firm Thomas Cook has been seen a quarter of a million fewer holidaymakers travelling to the popular winter sun destination of Egypt.

Reporting figures for the seasonally quieter six months to March 31, the tour operator said the impact of Egypt's political turmoil on demand took £131 million off its half-year sales and £14 million from its profits.

However, the business said increased gains from its savings programme meant it still narrowed losses to £257.1 million, from £268.8 million a year ago.

Thomas Cook is significantly scaling down its Bradford area operations. In January it announced plans for the phased closure of its administrative centre at Birkenshaw, with the loss of nearly 150 jobs This followed the axing of its city centre call centre with the loss of 500 jobs.

The firm increased its target for its current round of cost cutting to £460 million from £440 million by 2015. It added that for its second round of cost cuts, which aims to save over £400 million by 2018, it had already identified £150 million of savings.

Chief executive Harriet Green said that despite the fall in the number of holidaymakers travelling to Egypt "the group's increased financial strength enables it to withstand such external events."