With a strong third quarter in the bag, we suspected tour operator TUI Travel (TT.) might do better than expected this year. That’s why we tipped the shares three weeks ago. Well, the owner of Thomson and First Choice has repaid our faith and upgraded profit guidance again.
IC TIP:
Buy
at
370p
TUI, which first revised estimates higher in August, now expects growth in full-year underlying operating profit of "at least" 11 per cent, better than its five-year target of 7-10 per cent. Of course, trouble in Egypt has cooled demand and TUI has chosen not to make up all the shortfall elsewhere. But most of its summer breaks have now been sold at higher prices, and holidaymakers have paid extra for 31 per cent of its winter getaways, too.
