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Package holiday revival helps TUI AG

Tuesday, Dec 17, 2013 - 00:59

Dec. 18 - German travel and tourism group TUI reports an unexpected net profit for the 2012/13 financial year and says it will resume dividend payments. As Sonia Legg reports it's partly thanks to British and German demand for holidays.

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The revival of the package holiday helped TUI Travel's profits last week - this week it's the turn of its parent group TUI AG. The German travel and tourism group has just reported a surprise full year net profit of 4.3 million euros. Analysts had been predicting a loss of more than 27 million euros. It's partly down to a restructuring of the cruise and hotel operations under Chief Executive Friedrich Joussen. But an unexpected increase in customers is helping - particularly among Germans and Brits. TUI Travel which operates Thomson and First Choice, reported underlying operating profit up 13%. Merger talks between the TUI Travel and TUI AG were called off earlier this year but there's been recent speculation a transaction could be revived. AG owns almost 55% of TUI Travel, which is Europe's largest tour operator. Its shares rose almost 5% on the news and the group now plans to resume dividend payments. sparked a share price boost of nearly five percent.

Package holiday revival helps TUI AG

Tuesday, Dec 17, 2013 - 00:59

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