TUI Travel Plc reports strong third quarter trade
TUI Travel has said that it is confident of delivering full year underlying operating profit growth of at least 10% after posting a 3% rise in earnings in its third quarter.
In the three months to 30 June, TUI Travel saw its underlying operating profit rise to £76 million from £74 million a year earlier. Revenues increased by 5% to £3.86 billion.
TUI Travel said its bookings in the UK were continuing to outperform the market with volumes rising by 4% and average selling prices up by 7%. Online sales now account for 47% of bookings in the UK compared to 45% a year ago.
The group added that it had made an encouraging start to the Winter 2013/14 season, with 21% of the winter programme already sold.
TUI Travel chief executive Peter Long said: “Our strategy of offering our customers unique holiday experiences continues to drive sustainable growth. Our strong brands and market leadership position are fundamental in achieving this strategy. As we progress towards the end of the high-season, 84% of our Summer 2013 programme is now sold.
“The flexibility and robustness of our business model enables us to more effectively absorb the impacts of geopolitical events. Given our current position we remain very confident of achieving full year underlying operating profit growth of at least 10% on a constant currency basis and are well positioned to continue to deliver our five year growth roadmap.”
