The boss of Tui has backed the company by spending almost €1 million on shares in the business.

The shares acquisition by chief executive Fritz Joussen was disclosed yesterday, a week after Europe’s largest travel group issued a profit warning.

The value of shares in the company have fallen by almost a third since the warning which came ahead of Tui revealing a doubling in seasonal losses to €83.6 million for the three months to December 31.

Tui shares closed down a further 2.6% or 21.6p yesterday at 809.20p.

No comment was given alongside the notification of the shares purchase yesterday.

The company’s annual meeting on Tuesday in Hanover agreed to distribute a dividend of €0.72 per share for the 2018 financial year when Tui recorded an operating profit of €1.17 billion on turnover of €19.2 billion.

The group cut its three-year profit forecast of at least 10% annual growth last week and said earnings for the current financial year ending September 30 would be broadly flat.

However,  Joussen described overall global trends for tourism as being “intact” when delivering the quarterly results ahead of the agm.

“Travel and tourism remain a growth market,” he said. “Customers continue to travel, but they are currently resistant to increases in price.

“During this consolidation phase in our sector, it is particularly important to adequately participate in market growth.

“Tui has a good strategic and operational positioning, and the transformation of the group as a digital platform company is progressing.”

MoreTui losses double in three months to December