TUI Group says profits set to rise despite terror disruption

TUI Group, Europe’s largest tour operator, yesterday said it was on track to meet its profit target this year as more European holidaymakers head further west and Britons remain eager to go abroad despite the fall in sterling after the Brexit vote.

TUI’s outlook contrasted with smaller rival Thomas Cook, which has more exposure to troubled destinations in the eastern Mediterranean such as Turkey and which last month lowered its full-year profit forecast as it worked to move more of its package holidays to the western Mediterranean.

TUI confirmed that it would deliver underlying profit growth of at least 10% at constant currency rates in the 12 months to the end of September, despite lowering its sales forecast after security concerns in Turkey and elsewhere deterred holidaymakers.