TUI confident of 11% rise in full year profit

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Tour operator TUI is “confident” of achieving an 11% increase in underlying operating profit for the year ending 30 September after reporting strong summer and preliminary winter trading.

In a trading update TUI predicts it will improve on the £490 million ($784 million) underlying profit it achieved in the year ending 30 September after seeing an 8% increase in UK sales and a 10% increase in sales in its Nordic market this summer season compared to a year ago.

Unique holiday bookings in the UK, Nordics and Germany for the summer were up 13%, 11% and 5% year-on-year.

While TUI reported a 22% drop in sales on French operations and flat demand in Germany, overall sales have increased 2% on the same period a year before.

The Germany headquartered tour operator says it has now sold 31% of its winter 2013/2014 mainstream programme.

“We are very pleased with our trading during the summer 2013 high season, with most of our programmes now almost fully sold. Our strong performance in the market continues to be driven by increased customer demand for unique holidays and higher levels of direct distribution,” says Peter Long, chief executive of TUI Travel.