Tui has said “strong demand” for holidays this summer has helped the travel giant deliver record revenues for the past quarter.
Europe’s largest tour operator posted growth despite a backdrop of economic uncertainty and delays in plane deliveries affecting other travel firms.
The business, which has benefited from the bankruptcy of German rival FTI, told shareholders that group revenues grew by 9% to 5.8 billion euros (£5 billion) over the three months to the end of June.
Tui said bookings for this summer were up 6% while prices were 3% higher, amid “strong demand” for summer 2024.
It added that it has seen “promising” bookings for the winter season.
The company, which abandoned the London Stock Exchange in favour of listing purely in Germany earlier this year, maintained its financial guidance for the financial year.
Tui group chief executive officer Sebastian Ebel said: “For the eighth consecutive time, we are reporting double-digit growth in underlying EBIT (earnings before interest and tax).
“In a market environment that remains challenging, this also demonstrates the strength and future viability of our business model.
“We are a developer, investor and operator in the destinations, which makes us very different from our competitors.
“The transformation is in full swing: We are expanding our product portfolio and pushing ahead with digitalisation.”
Julie Palmer, partner at Begbies Traynor, said: “Tui’s Q3 results prove that the travel sector is more resilient than some corners of the market thought it could be this summer as price increases across the sector resulted in some weakness in demand.
“That’s not the case at Tui where customer demand remained resilient throughout the period.
“This meant that even the airline division was able to offset increased input costs thanks to improved pricing and higher volumes. Guidance is also unchanged for the full year which is good to see.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here