TUI on target to meet full year guidance

TUI on target to meet full year guidance

Reporting its third quarter results earlier, TUI Travel confirmed it was on track to meet expectations for the full year, boosted by a strong performance in its British and Nordic businesses.

Europe’s biggest tour operator reported a 57 per cent increase in operating profit to £88 million in the three months to June 30th, benefiting from the late timing of Easter this year.

The non-recurrence of volcanic ash disruption also assisted the results.

“This performance is particularly pleasing in the UK against a backdrop of weak consumer sentiment,” chief executive Peter Long explained.

“For the summer, our overall volumes left to sell are in line with the prior year and we are confident of meeting our expectations for the full year in what is a challenging trading environment.”

Events in North Africa, however, have continued to impact significantly on trading for the company.

“Having reacted quickly to the events in North Africa by moving capacity mainly to the Western Mediterranean we have been able to mitigate the impact of these events across all regions with the exception of France where many consumers are choosing to holiday within their own country,” added Long.

TUI is majority owned by German group TUI AG.

The parent company has recently been mooted as a possible merger partner for Thomas Cook which has launched a “fundamental review” of its activities following the loss of its chief executive, Manny Fontenla-Novoa, and issuing of a number of profit warnings.