TUI lifts full-year profit outlook, shares spark

(Sharecast News) - Travel firm TUI lifted its full-year profit guidance on Tuesday following a strong performance in the first nine months of the year and "initial positive indications" for July. In a brief update ahead of its third-quarter results on Wednesday, TUI said that as per 30 June, group revenue stood at €14.7bn, up €1.0bn at constant currency, with an underlying EBIT of €199m, up €150m.

Results have been driven by a record Hotels & Resorts and Cruises performance, while the environment in the markets & airline segment remains "challenging in a competitive market", TUI said.

As a result, the company now expects full-year underlying earnings before interest and tax to rise between 9% and 11% year-on-year at constant currency, up from a previous range of between 7% and 10%.

TUI also said it expects revenue to increase at the lower end of its 5% to 10% range. It said the new guidance is provided "within the framework of the current trading environment as well as macroeconomic and geopolitical uncertainties".

At 1500 BST, the shares were up 3.8% at €7.92.