Tui delivers strong update despite terrorism

Travel giant remains on track to hit profit target
Tui Group has managed to withstand the impact of geopolitical problems across some of its destinations and remains on track to hit its profit target.
The travel giant’s summer 2016 program is 47% sold, which is broadly in line with last year. Revenue is up 3%, driven by 2% growth in bookings and 1% higher average selling prices.
But Turkey continues to struggle. Demand for the destination was described as “subdued” and capacity has been moved to the likes of mainland Spain, the Balearics and the Canaries.
Tui said it was “pleased” with how summer ’16 trading had developed since its last update and remains confident that it will be able to achieve underlying earnings before interest, taxes and amortisation growth of at least 10% in its current financial year.
“The group has again demonstrated the flexibility of its business model and the ability to remix destination capacities to match demand and as a result demand and pricing has remained resilient overall despite the impact of geopolitical events,” chief executive Friedrich Joussen said.
“Our integrated model with our differentiated range of own accommodation content, combined with strong supplier relationships continue to give us a strong competitive position and sustainable earnings growth.”
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