Tui notes profit rise on strong summer

Tui Travel witnessed a 3% rise in its pre-tax profits making £475 million in the year to September.

Peter Long.
Peter Long.

 

Strong performance was noted in the UK, Holland and Germany, which saw underlying profits hit £581 million, a 13% rise.

The company also said it had seen strong trading in the UK, with winter and summer bookings up 4% and 9% respectively.

Tui Travel chief executive Peter Long said the group had “delivered another year of out-performance against our growth roadmap achieving an underlying operating profit growth of 11% at constant currency rates”.

“This demonstrates the strength and resilience of our business model in what has been a competitive trading environment for many tour operators and airlines,” he continued.

“The combination of our market leadership position, scale, focus on unique holidays distributed increasingly online and our relationship with the customer throughout their whole holiday experience continues to provide a strong basis for sustainable, profitable growth.”

Long also addressed the merger of Tui Travel and German parent Tui AG, which will be listed on the London Stock Exchange on 17 December 17, stating it will “strengthen and future-proof our combined group”.

“It will also enhance the certainty of long-term unique holiday growth and reinforce our clear competitive advantage through further control over the end-to-end customer experience,” he asserted.

“This will mark the start of an exciting new phase of growth, delivering significant opportunities and value to customers, employees and shareholders.”

The combined business will boast six airlines with 140 aircraft, more than 300 hotels, 12 cruise ships and around 77,000 employees.

 

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