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TUI Travel raises annual profit forecast

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(Globalpost/GlobalPost)

TUI Travel, Europe's biggest tour operator, announced Thursday it was raising its full-year profits forecast following robust trading during the northern hemisphere summer.

The company, whose brands include First Choice and Thomson, however added that it would "significantly" cut its holidays on offer in Egypt for the upcoming winter season owing to unrest in the north African country.

The London-listed company said in a statement that it expected operating profit growth of "at least 11 percent" in the 12 months to the end of September compared with 2011-2012.

This compared with previous guidance of 10 percent for earnings before tax and interest payments in 2012-2013.

"We are very pleased with our trading during the summer 2013 high season, with most of our programmes now almost fully sold," TUI Travel chief executive Peter Long said in the trading statement.

"We are now confident of achieving full year underlying operating profit growth of at least 11 percent," he added.

TUI Travel added: "The winter 2013/14 Egypt programme is being reduced significantly and capacity is being increased to other destinations."

The group though said that it was confident of absorbing "the impacts of geopolitical events, including the current turbulent political situations in Egypt and Syria".

TUI Travel will announce its full annual results on December 10.

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http://www.globalpost.com/dispatch/news/afp/130926/tui-travel-raises-annual-profit-forecast