Tourism group TUI AG said full-year earnings could exceed its guidance after third-quarter profits jumped 83 per cent thanks to strong results at its cruises and hotels divisions and at its unit TUI Travel.
TUI AG, currently in merger talks with its 55 per cent-owned unit TUI Travel, said it expected to “at least” hit the upper end of its forecast range for underlying profit to grow by between 6 and 12 per cent.
While TUI AG gets over 80 per cent of its earnings from London-listed TUI Travel, Europe’s largest tour operator, it also operates its own cruises and hotels divisions.
TUI Travel said last week that it was on track to meet its annual profit goal thanks to growing sales of higher-margin holidays.
TUI AG reported yesterday third-quarter sales of 4.83 billion euros (£3.86bn) and underlying earnings before interest, tax and amortisation (EBITA) of 163 million euros, above analyst expectations for 141 million.