TUI AG (LSE:TUI) will provide a first-quarter update that follows up from an upbeat final results statement in December.
The Anglo-German travel group confirmed at the time that it was planning a rights issue to pay back state aid received from the German government during the pandemic, with around €737mln still owed, though that could rise to a possible maximum €957mn depending on its share price.
Otherwise, the update confirmed holiday demand was recovering well, with a swing back to underlying profits for the year to end-September, a reduction in net debt to €3.4bn and prices up 28% for the winter season.
"TUI isn’t yet basking on a sun lounger, but it’s benefiting from a take-off in bookings and, finally, pent-up demand has moved the travel giant out of the emergency exit row," said analyst Susannah Streeter at Hargreaves Lansdown.
The recent welcome rays of recovery from the industry, backed up by the recent results from European airlines "bodes well for the sun to keep shining for TUI", she added.
"All segments of the business have returned to profits for the first time since the pandemic and investors will be keeping a close watch on that trend continuing, especially given the debt and state aid TUI took on during the pandemic."
But Streeter said the continued household squeeze will mean its not going to be a completely smooth journey ahead, as holidaymakers sniff out the best deals and perhaps favour a DIY booking approach, which could provide a headwind.