Travel group Tui has raised its expectations for full-year turnover as strong demand buoyed third quarter results.
For the third quarter, group turnover was up 12.6 per cent to €4.8bn (£4.3bn).
Underlying earnings before interest, tax and amortisation rose 37.7 per cent to €221.6m (£200.4m).
Remarkably this is the first time the group has ever reported an underlying profit for the first nine months of the year. EBITA for the full period was €6.2m compared to a loss of €31.8m last year.
Why it's interesting
Despite lagging consumer confidence, Brits still seem to be buying holidays. UK customer volumes increased by five per cent in the quarter to 30 June.
ALthough this partially reflects the late timing of Easter, Tui said that demand for its holidays "remains resilient in the UK," allowing the group to offset the effect of a weaker sterling.
Across the rest of Tui's operations, profits were down in the Western Europe region (France, the Netherlands and Belgium) due to the costs of acquiring Transat and marketing in Belgium.
The company also noted that despite security concerns it had seen renewed popularity of Turkey and North Africa as travel destinations, even after Tui was criticised during the inquest of the 2015 Tunisian terror attack.
What the company said
Chief executive Fritz Joussen said: "This good performance reflects our successful transformation and focus on own hotel and cruise brands. We have significantly reduced the seasonal swing of our business."