Thomson and First Choice owner TUI Travel reported a 21 per cent jump in third-quarter operating profits to £92m on the back of selling higher-margin holidays to destinations such as Jamaica, Mexico and Ibiza.
TUI Travel is in £4.4bn merger talks with its majority owner Germany’s TUI, and under Takeover Panel rules has until September 19 to announce a deal.
TUI said it was “delighted” with the performance of its online operations, with bookings over the internet accounting for more than half of summer holidays sold so far.
Chief executive Peter Long said: “We remain pleased with progress in summer trading, despite strong comparatives, and are achieving higher average selling prices across mainstream overall.”
TUI is targeting seven to 10 per cent growth in underlying operating profit on a constant currency basis for the 12 months to the end of September, but takeover rules prevented it from re-affirming guidance yesterday.
The two companies held merger talks in 2013, but a deal collapsed after TUI AG said an offer would not make sense given their share prices at the time.