TUI Travel post improved figures

Europe’s largest tour operator has announced a 10% profit growth as a revised target for year-end.

Arguably today’s better figures were signposted yesterday, after easyJet revealed an increase in its monthly passenger figures and InterContinential Hotels Group announced a jump in half-year numbers.

TUI Travel’s third-quarter figures have been strong enough for the company to raise its year-end target to 10% profit growth. The company has already seen 84% of its summer holidays sold after a 4% increase in bookings. In the last few weeks the eurozone has seen an impressive pick-up in weather conditions and this will have helped the industry.

Although a bit early to call, it also appears that we are at the beginning of the end of the ‘staycation’ mentality that has been prevalent among Europeans over the last few years. This more optimistic outlook by the holidaying population is highlighted by the fact that TUI has already seen bookings covering 21% of its 2013/14 winter holiday packages.

One of the issues that has plagued travel operators over the last couple of years has been their cash balance books, however TUI Travel does not appear to be suffering from a problem here, having an extra £198 million of operational cashflow compared to this time last year.

TUI Travel chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.