by Sarah Young
LONDON (Reuters) – Europe’s largest tour operator, TUI, said on Wednesday it expects a 25% increase in its operating profit for 2024, which has already doubled this year thanks to strong demand for holidays, cruises and of hotel stays.
The group, which is listed in Frankfurt as well as in London, has also announced that it is considering ceasing its dual listing, with a withdrawal from the British capital.
Like its competitors, TUI has benefited from a surge in demand this year following the post-pandemic tourism recovery but analysts are concerned about the sector’s prospects due to the conflict in the Middle East and the global economic slowdown.
Presenting its annual results on Wednesday, TUI said its booking levels were solid, although it noted a “slight temporary slowdown” in demand for travel to Egypt due to tensions. in the neighboring Gaza Strip.
TUI has assured that the reservations observed for this winter and next summer allow it to expect an increase of at least 25% in its operating profit and at least 10% in its turnover.
On the Frankfurt Stock Exchange, the stock climbed 9.5% in the morning.
TUI has indicated that it could present to shareholders in February a plan to withdraw from the London Stock Exchange, the group citing the increase in the volume of trading in its securities in Frankfurt where the majority of its investors are based.
The dual listing of TUI, headquartered in Hanover, results from the merger of its tourism activities with those of British company First Choice Holidays in 2007 to create TUI Travel, listed in London. The two companies fully merged seven years later.
(Report Sarah Young, French version Nathan Vifflin, edited by Blandine Hénault)
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