TUI AG (LSE:TUI) backed guidance after a strong summer which saw bookings return close to pre-Covid levels.
The holiday operator expects to increase underlying EBIT significantly for both the fourth quarter and also for the full year against the previous year.
Hotels & Resorts are anticipated to be close to an already strong prior year while both Cruises and Markets & Airlines are set to achieve a significantly improved result with a strong increase in results expected for TUI Musement.
The firm reported a strong pipeline of 13.7 million bookings for the Summer 2023 season, a 5% increase against the prior season and close to pre-pandemic levels at 96%.
TUI said it had received 1.1 million additional bookings since its third-quarter update. Demand in the final month of season was well ahead of Summer 2022 at plus 8%, with Greece and Turkey popular destinations.
This positive momentum has continued into Winter 2023/24 with an expanded programme and overall bookings up 15% against the previous year.
The rise in bookings across all key markets was supported by higher prices, up 4% versus the prior season.
TUI reiterated its mid-term 2025/26 ambitions for underlying EBIT to significantly build on €1.2 billion.
“We have a target to return to a gross leverage ratio of well below 3.0x and aim to return to a credit rating in line with the pre-pandemic rating of BB/Ba territory,” TUI added.
The firm said it would update investors on its latest strategic initiatives alongside full-year results in December.