Tui maintains course despite shifting sands in first quarter

The Anglo-German travel giant generated turnover of €3.72bn (£2.88bn) in the three months to 31 December, up 5.4% compared to the same period a year before, if ignoring the impact of currencies, while underlying EBITDA losses improved 7.2% to €97.3m.

If currency effects are included, turnover rose only 2.5% while EBITDA losses narrowed 3%.

The shift in demand away from Turkey has been significant, with summer 2016 bookings there currently down around 40%, though this has seen destinations outside Turkey such as Spain and the Canary Islands benefit instead.

The Northern region and Riu resorts were both reported to have performed particularly well, with management pleased about demand and yield performance in the cruises business.

The north of Europe saw a strong end of summer trading result in the UK, and continued trading margin improvement in the Nordics.

Germany continued to endure challenging trading conditions, compounded by lower demand for North Africa and Turkey, and lower Canaries margins.

Of the Winter 2015/16 period, 82% had been sold at average selling prices up 3%. Summer 2016 was 33% sold at average price up 2%, with the UK bookings up 9%.

Chief executive Friedrich Joussen said synergies from the December 2014 merger of the British and German arms were "as planned", with a further €10m realised in the quarter, and the disposal process for Hotelbeds remaining "on track".

Based on current trading, although the quarter is the least important of the group's financial year, Joussen said the resilience of the integrated business model meant he reiterated guidance for at least 10% growth in underlying EBITA in 2015/16.