TUI boosts full-year profitability

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TUI Travel increased its underlying operating profit 20% to £589 million ($968 million) in the year ending 30 September.

The Germany-based leisure group grew revenue 4% to over £15 billion.

It says the improved performance was driven by sales of "higher-margin unique holidays".

TUI's French carrier Corsair made an underlying loss of £1 million, sharply narrowing a £15 million loss the previous year. The restructuring of the airline is now complete, says TUI, and this contributed £12 million in efficiency savings towards the business improvement programme delivered in the period.

Overall winter 2013/2014 trading "is in line with our expectations, with 60% of the programme sold", says TUI, which was "pleased" with summer 2014 trading "despite strong comparatives from the prior year".

Peter Long, TUI's chief executive, adds: "I remain confident that we will deliver consistently on our five-year annualised growth target of between 7% to 10% at constant currency."

Statutory operating profit fell to £297 million from £301 million in 2012 , hit by a £188 million goodwill impairment.