TUI bucks industry trend with strong results

TUI bucks industry trend with strong results

TUI Travel has reported a strong improvement in profitability during a tumultuous time for travel industry generally.

With rival Thomas Cook struggling under the threat of bankruptcy only days ago, TUI revealed a pre-tax profit of £144 million for the financial year ended September.

This compared with a loss of £73 million the previous year at the group – which operates the Thomson and First Choice chains in the UK.

Demand was boosted by boosted by strong online sales and demand for exclusive resorts TUI said in a statement.

Underlying profits were up 25 per cent at £360 million.

However, TUI sounded a note of caution, revealing sales were down over recent months when compared to last year.

This was largely due to customers steering clear of North African destinations – including Tunisia and Egypt – with many planning trips to Spanish islands, such as Majorca and Menorca instead.