Tour operator TUI (TUI) is confident on delivering 12-13% growth in underlying earnings before interest, tax and amortisation this year.

The company is 1.6% higher at £11.03.

It says the growth reflects its strong integrated business model and success of its merger synergies.

TUI has launched two further cruise ships and five hotels earlier in 2016, with further openings expected in the future.

In the UK, revenue and bookings are 5% higher, driven by long haul bookings to the Dominican Republic and Mexico.

TUI

TUI says the winter period is trading in line with expectations, with revenue up 11% in source markets.

Revenue has climbed by nearly a third in the UK with bookings up by 22% over the same period.

However, revenue has declined 4% in the Nordics, which reflects the impact of geo-political instability in Egypt and Turkey, which was not offset by more demand for alternative locations.

In Germany, revenue has fallen 2% with bookings 4% lower as TUI aims to increase their market share in challenging conditions.

The travel firm is optimistic about trading in Belgium, which has improved after subdued demand over the summer following the terrorist attack on Brussels Airport in March.


Issue Date: 28 Sep 2016