Strong results at Tui AG’s cruises and hotels divisions and UK-based Tui Travel helped push third quarter profits up by 89%.
The German group, currently in merger talks with Tui Travel in which it owns a 55% stake, expects to hit the upper end of its forecast growth of 6%-12% in annual underlying profit.
Tui AG reported third-quarter sales of €4.83 billion – up 3% year-on-year.
Underlying earnings before interest, tax and amortisation (EBITA) almost doubled to €163 million thanks to higher hotel occupancy and rising profits in its cruise division.
It said its cruises division as a whole should achieve a turnaround this year and post a profit, while its luxury and adventure cruise arm Hapag-Lloyd Cruises will move into the black in the next financial year.
CEO Fritz Joussen said: “Our oneTUI strategy programme is based on two pillars: cost discipline and efficiency as well as growth in Hotels & resorts and the cruises sector.
“We have already started to move from consolidation to the growth phase, as is already clearly visible.
“We are delivering growth in all Sectors and are increasing our profitability – through our own efforts.
“For the full financial year, I am therefore more than confident that we will clearly achieve our business and strategic targets. I expect our EBITA growth to be at least at the upper end of the target range.”
Tui AG and Tui Travel have until September 19 to announce a formal merger proposal.