TUI confirms guidance after strong summer season, shares rise
Europe’s biggest tour operator TUI this week confirmed its annual guidance and mid-term targets after a strong summer season, sending its shares up in morning trading.
Shares in TUI rose 2 per cent by 0735 GMT, hitting their highest level in two months.
TUI forecast a 25 per cent increase in operating profit and 10 per cent revenue growth this year.
“The sun continues to shine on holidaymaker TUI,” said Hargreaves Lansdown analyst Aarin Chiekrie, adding that markets see further room for 30 per cent annual profit growth.
Holidaymakers are increasingly turning to package holidays as soaring hotel and flight prices revive demand for all-inclusive deals.
TUI’s summer bookings rose 6 per cent year on year, hitting 14.7 million, or 97 per cent of the programme sold, the group said, as it benefits from the resurgence of packaged holidays as well as the recent bankruptcy of German rival FTI.
It said the start of the winter season was looking promising with bookings rising 7 per cent, hitting 1.8 million, which corresponds to 33 per cent of its whole programme.
TUI is scheduled to report full-year results on December 11.