TUI forecasts 10% profit growth to 2019

Growing demand for holidays in long-haul destinations
TUI Group has expressed confidence in the future by extending its profit forecast, after posting a 12.5% rise in annual core earnings despite the fall in popularity of destinations such as Turkey and Egypt.
Europe’s biggest travel company says it expects profits to increase by at least 10% a year at least until 2019, citing a strong outlook and future investments in hotels and cruises.
“The transformation of the business from a trading company into an integrated company with hotels and cruises at the core of the business will deliver the results,” chief executive Fritz Joussen assured.
TUI posted core underlying profit of just over €1 billion for the 12 months ending September 30, up 12.5% from the year before.
TUI says that winter bookings this season are up 5%. There is growing demand for holidays in long-haul destinations like the Caribbean, Mexico and United States – a trend that has already aided the results for the last financial year despite the difficult geopolitical conditions – as well as Spain and Portugal.