Thomson and First Choice parent Tui Travel is expected to reveal that it has weathered stormy conditions in the holiday sector by selling more shorter holidays and all-inclusive deals.

It is expected to reveal an 8% rise in full-year underlying profits to £469 million when it reports on Thursday, according to analysts.

The Icelandic ash cloud last year caused widespread disruption and the Arab spring uprising this year hit demand for previously popular destinations in North Africa, such as Tunisia and Egypt.

This has caused rival Thomas Cook to issue three profits warnings so far this year and led to the resignation of chief executive Manny Fontenla-Novoa.

But Tui has proved more robust, partly as a result of exclusive packages such as its Thomson Sensatori resorts, which are aimed at the high end of the market, and SplashWorld Holidays, which feature resorts with pool complexes.