TUI Travel PLC has reported its third quarter earnings.
Third quarter underlying operating profit of £74m (Q3 11: £88m), reflecting the timing of Easter in the second quarter.
Very encouraging trading for Summer 2012 high season, with less left to sell versus the prior year.
UK continues to outperform the market, achieving strong lates margins and load factors.
Summer 2012 - continued high demand for differentiated product:
UK 63% of bookings – up seven percentage points on prior year
Nordics 76% of bookings – up five percentage points on prior year
France continues to underperform expectations in a very challenging market.
In A&D, Summer 2012 bookings are up 9% and sales (TTV) up 17% versus the prior year.
Encouraging start to Winter 2012/13 trading.
Cashflow improvement of £52m in the third quarter compared with the same period last year.
The business improvement programme is progressing to plan with £11m of cost savings delivered in the nine-month period.
Peter Long, Chief Executive of TUI Travel PLC, commented
“We are pleased with our performance, driven by our strategy of differentiated and exclusive product with a focus on online distribution. We are significantly outperforming the market in the UK.
“Summer 2012 volumes have improved in most key markets since our last update. We are seeing strong demand and lates margins for the peak Summer period. Our Winter 2012/2013 programme has had an encouraging start.
“We are confident of exceeding our full year expectations based on like for like exchange rates, however, the impact of retranslation of fourth quarter Eurozone profits at current exchange rates leaves us to believe we will perform in line with our expectations for the full-year.”