TUI on track for full year

TUI Travel , Europe's biggest tour operator, said it was on track to meet expectations for the full year, boosted by a strong performance in its British and Nordic businesses.

The company, which is majority owned by German group TUI, reported a 57 per cent rise in operating profit to £88m in the third quarter to end June, benefiting from the late timing of Easter this year.

"This performance is particularly pleasing in the UK against a backdrop of weak consumer sentiment," chief executive Peter Long said in a statement.

"For the summer, our overall volumes left to sell are in line with the prior year and we are confident of meeting our expectations for the full year in what is a challenging trading environment," Long added.

Market expectations for full year EBIT (earnings before interest and tax) range between £441m and £493m with the consensus at £468m.

Rival Thomas Cook has issued three profit warnings in the past year, leading to the departure of veteran chief executive Manny Fontenla-Novoa last week.