Tour operator TUI confirms guidance after strong summer season

Holidaymakers are increasingly turning to package holidays as soaring hotel and flight prices revive demand for all-inclusive deals. Pic: File photo: AP/Ted S. Warren

Europe's biggest tour operator TUI on Tuesday 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% in early trading, hitting their highest level in two months.

TUI forecast a 25% increase in operating profit and 10% 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% 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% year on year, hitting 14.7 million, or 97% 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%, hitting 1.8 million, which corresponds to 33% of its whole programme.

TUI is scheduled to report full-year results on December 11.

Meanwhile, TUI shareholders voted to de-list from the London Stock Exchange earlier this year and move trading primarily to Germany as the pool of listings in the UK stock market shrinks.

- Reuters with additional reporting by Bloomberg