TUI Travel posts record full-year profits

TUI Travel posts record full-year profits

TUI Travel posted an 18-percent leap in operating profits of a record £471 million for the year, despite tough economic conditions which are battering rival Thomas Cook.

Strong online sales and demand for exclusive resorts helped Europe's biggest tour operator report full-year profit at the top end of forecasts, the company said.

"Even in the current challenging market conditions, we continue to operate from a position of strength," chief executive Peter Long said on Monday.

"We have self-help measures in place to help offset the difficult macroeconomic environment, including clear plans for Germany and France," he said, without giving further details.

TUI Travel - which operates Thomson and First Choice and is majority-owned by German group TUI AG - said on Monday it had achieved record profits in Britain, the Nordic region, Belgium, the Netherlands, Canada and Austria, despite a backdrop of unrest in key North African destinations and weak consumer sentiment in some source markets.

Thomas Cook has endured a torrid 2011 and faces an uncertain future as it battles to regain the confidence of holidaymakers and investors after securing a rescue package from its lenders.

TUI Travel has looked to cash in on its rival's misfortune, placing advertisements in national newspapers stating: "Another holiday company may be experiencing turbulence, but we're in really great shape."

Shares in TUI Travel closed on Friday at 169.6 pence, valuing the business at £1.9 billion.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags europeonline salesprofitsmacroeconomic environmentTUI Travel

More about Thomson

Show Comments