Tui Travel has received a fair wind in the company's third quarter from a buoyant 'lates' market as sodden Brits have paid up to escape the torrid weather. There are also some signs of improvement in the French market, although it is still underperforming, and Tui continues to do well in pushing higher-margin differentiated holiday products.
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All the same, underlying operating profits fell 16 per cent in the third quarter overall, due in part to the fact that Easter fell in the second quarter this year. What's more, despite the strong recent performance the company's fourth quarter is expected to be hit by currency headwinds, which means better-than-expected underlying results will only match expectations once translated into sterling.
