UPDATE 2-Bookings at TUI Travel, T. Cook seen down -sources

* Winter, summer bookings at TUI Travel down - sources

* TUI Travel profits may improve on capacity adj. - sources

* Thomas Cook Germany 09 summer bookings look weak - sources (Adds details on Thomas Cook and background)

By Arno Schuetze and Angelika Gruber

HANOVER/FRANKFURT, Jan 27 (Reuters) - Bookings at the German operations of Europe's largest travel companies -- TUI Travel (TT.L) and Thomas Cook (TCG.L) -- look set to be weaker this year, sources familiar with the matter told Reuters on Tuesday.

Bookings for the 2008/09 winter season and the coming summer season at the German operations of TUI Travel were down by a single-digit percentage, one source said, adding the decline in summer bookings was steeper than the fall in winter bookings.

But profits would still develop well due to conservative capacity allocation, the source said.

Thomas Cook's German unit also recorded weaker 2009 summer bookings, which are seen down by a double-digit percentage, two other sources said.

TUI Travel is Europe's largest travel company, followed by Thomas Cook. Both companies' German units declined to comment ahead of their trading updates due on Feb. 5 and Feb. 12, respectively.

The news is an indication that the travel industry may not remain unscathed amid the turbulence on global markets in the wake of the credit crisis.

Last week, Peter Long, chief executive of TUI Travel, repeated his conviction the sector would prove more resilient than other consumer-facing industries to the impending recession in the UK. However, he also acknowledged the potential threat from rising unemployment.

Airline operators have been reducing capacity to maintain profitability and respond to a global economic downturn that followed hard on the heels of last year's sky-high fuel prices.

One of the sources also said that TUI Travel was looking into implementing shortened working hours in Germany, which could affect about 300 staff. A decision on this could come in the next four weeks.

Shares in TUI Travel were up 1.7 percent at 229.0 pence in London at 1443 GMT and Thomas Cook was up 2.3 percent at 181.0 pence, both outperforming a 0.5 percent drop in Britain's FTSE 100 index .FTSE.

(Reporting by Arno Schuetze in Hanover and Angelika Gruber in Frankfurt; Editing by Rupert Winchester)