TUI says summer trading was solid, issues confident outlook

In a trading update ahead of its full-year results, the company said the season was now fully sold, with bookings and average selling prices ahead of the previous year.

It said winter 2015/2016 was trading in line with its expectations and it had seen a good start to UK sales for summer next year.

“We are particularly pleased with the strong performance by the UK and continued margin improvement in the Nordics,” Tui said.

“Our growth strategy, as outlined in May 2015, is delivering results, supported by the resilience of our integrated business model.”

Based on current trading, the company said it was confident of delivering underlying operating profit growth of 12.5% to 15% in the current financial year, in line with its previous guidance, and at least 10% underlying earnings before interest, tax and amortisation compound annual growth rate over the next three years.

In a separate statement, Tui, which was formed from a merger between German parent Tui AG and its UK affiliate in December, said joint chief executive Peter Long will no longer become the supervisory board chairman in 2016 as originally planned.

The company said the decision was made in line with its plan to follow the recommendations of the German Corporate Governance Code and the UK Corporate Governance Code, both of which advise against the direct appointment of an executive board chairman to the supervisory chairmanship unless this is passed at the general meeting.

Tui said Long will be proposed as a board member at the shareholder meeting.

At 1415 BST, Tui shares were up 1% at 1,190p.