TUI AG (LSE:TUI), the Germany-based travel group, saw underlying earnings surge by a third as all business arms saw a healthy improvement over the past twelve months.
Now Frankfurt-listed after scrapping its London quote, TUI said revenues rose by 12% to €23.2 billion in the year to September 2024, though it added it won’t be able to maintain this pace.
Revenues in the current year are forecast to rise by between 5% and 10% and underlying pre-tax earnings by 7% to 10%.
Sebastian Ebel, chief executive, added that 2024 had also been a very good year for profits with underlying earnings up by 33% to €1.3 billion.
However, costs are also expected to rise due to inflation and Easter moving into the third quarter of its financial year.
Price hikes are helping to offset this and are running 5% higher in winter and 3% for next summer, said Ebel.
Summer demand is being led by short and medium-haul destinations in Greece, Turkey and the Balearics though TUI UK winter bookings are flat and 3% lower for the summer season.