TUI soars despite turbulent travel market

TUI Group was flying high on Thursday, posting sizeable growth in its annual report despite a turbulent year for the industry.

The FTSE 100-listed travel conglomerate posted an 8% increase in underlying turnover in the year to 30 September, to €20.012bn (£14.487bn).

Its EBITDA was up 23% to €1.07bn, and earnings before tax soared 37% above the restated 2014 figures, to €885m.

It was the first annual results since the group merged its British operation TUI Travel, which included the Thomson division, into German parent TUI AG.

Chief executive Friedrich Joussen said it was a particularly strong year for the group's northern operations, hotels and resorts, and cruises.

"This was despite the tragic events in Tunisia and other geopolitical challenges earlier in the year, (which) demonstrates the resilience of our integrated business model."

TUI's western regional operations suffered through the year, however, posting a 15.8% decline in turnover to €68.8m.

"Benelux delivered an improved trading performance, however this was offset by the adverse impact of Tunisia, poor North Africa trading in France, re-branding costs in the Netherlands and costs associated with aircraft delayed entry-into-service in Belgium", said Joussen.

The group said it still anticipated strong winter trading despite the temporary cessation of flights to Sharm el-Sheikh.

TUI's accommodation distribution arm Hotelbeds was also cited as a possible sell-off in the near future, after experiencing a 14.8% rise in turnover.

"The strategic review of Hotelbeds is underway, including the potential disposal of the business, with the carve-out from Inbound Services expected to complete end of 2015 (or) beginning of 2016", said co-chief executive Peter Long.

A dividend of €0.56 per share was announced, up 70% on last year's €0.33.