TUI Group, the parent of Tui Travel, reported a 45% fall in profits for the year to September despite a 14% increase in operating earnings from tourism.
The Hannover-based company reported a group profit of €114 million (£135 million) down from €206 million (£244 million) a year ago. However, its underlying profit from operations rose 25% year on year to €589 million (£698 million).
TUI derives almost all its earnings from travel – about one-third of them from the UK – after moving into the sector in the 1990s from heavy industry and shipping.
The German group reported total revenue of €16.4 billion, of which Tui Travel contributed €15.7 billion and separate companies Tui Hotels & Resorts and Tui Cruises €559 million.
TUI reported earnings from Tui Travel up almost 11% year on year, in line with the results of the London-based tourism company stated earlier this month.
The group is reported to be preparing to sell its stake in shipping company Hapag-Lloyd after rescuing the company from failure during the downturn of 2009. Hapag-Lloyd is all that remains of TUI’s former heavy-industry empire.
The group was in the process of completing its divestment in 2008 when the world financial crisis struck.