Business

Travel firm Tui Group optimistic despite terror attacks

Tui aeroplane Image copyright Tui Group

The world's largest tourism group, Tui, has given an optimistic outlook for its business, despite the terror attacks seen this year.

The owner of the Thomson and First Choice brands said it expected underlying profit growth of at least 10% in the current financial year.

Tui reported a 32% rise in net profit to €577.5m ($634.2m; £418.2m) for the year to the end of September.

In June, 33 of the 38 tourists killed in Tunisia were on Tui holidays.

More recently, flights to the Egyptian resort of Sharm el-Sheikh were suspended by many countries following an attack on a Russian tourist flight.

However, Tui said its upbeat outlook "demonstrates the resilience of our business model, against the backdrop of the tragic events in Tunisia in June 2015 and geopolitical turbulence in some of our other destinations".

It added that it had seen a good start to trading for its summer 2016 programme, with bookings from Britain up 11%.

Tui's latest update on how much the Tunisia attack had cost it was €52m.

Of that, about €26m came from the impact of events there during the year, with another €17m provision against advanced payments the group had made for accommodation in the area that would now not be used.

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