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TUI AG sails ahead while Thomas Cook suffers

TUI AG sails ahead while Thomas Cook suffers

On the day Thomas Cook announced losses of nearly £400 million, rival TUI AG confirmed it expected to make a net profit for financial 2011.

Hanover-based TUI AG also revealed it was on track to reinstate a dividend following moderate growth in turnover and operating profit during the year.

However, the outlook remained challenging.

“The environment will remain challenging in the light of weaker economic growth in Europe and persistently high energy costs,” chief executive Michael Frenzel said in a statement.

“We see the further consolidation of our finances as the top priority considering the current financial market environment.

“But of course we have resolved to re-establish our ability to pay dividends as soon as possible, and we see ourselves on track.”

TUI last paid a dividend in 2007.