TUI Travel Reports Good Profit Year Despite Economy

TUI Travel has successfully ridden out the global economic downturn. The travel firm has posted a profit increase of 11 percent with an overall operating profit of £443m for this fiscal year ending on September 30. TUI travel, one of Europe’s largest tour operators, had stalled in profits at around £13.8bn with underlying shares increasing by 17% to 23.8p.

The announcement by the leading travel firm comes in the wake of Thomas Cook’s announcement, via their website, reporting an underlying profit margin of £308.2 million. Chief executive for TUI Travel, Peter Long, said that the firm was pleased to place high in their performance market, especially since they are only in their second year since their merger.

Long continued emphasizing that TUI had managed to stay strong in its profits and growth targets despite the economically harsh climate of last years business markets. He added that the profits speak for themselves demonstrating the company’s staying power.

TUI reportedly delivered £120m of their ‘synergy benefits’ and is getting close to reaching the target goal of £200m by 2011. Currently, the firm is trading for winter 2009/2010, and those shares are continuing to improve even in spite of unfriendly trading conditions.

Capacity reductions at the beginning of this year saw a drop in annual holidays by about 13 percent with UK prices up by 10 percent. However, trading for summer holidays in 2010 are up and remain positive. Load factors are lining back up with prior years and average selling rates have gone back up by 7 percent.