TUI has stated that it expects its full-year underlying operating profit to increase by at least 25%, after it recorded strong booking momentum going into Q4.

The package holiday firm reported record Q3 revenue of €5.8bn (£4.83bn), an increase of 9%, while its underlying EBIT jumped by €62m (£51.65m) to €232m (£193.26m) in the same period, an increase of 37%.

It added that its net debt had dropped by €42m (£35m) to €2.1bn (£1.75bn), while also seeing improvements "across all segments", which include hotels, resorts, cruises, and markets and airlines.

TUI said that its summer sales had increased by 6%, with Spain, Turkey and Greece being the most sought-after destinations. The firm has taken 1.4 million bookings since its update in August, totalling 14.7 million for the season.

Looking ahead, TUI said that for the full 2024 financial year, it expects revenue to increase by at least 10%, while its underlying EBIT is expected to jump by at least 25% year-on-year.

It also added that it expects to record a "slight improvement" on its net debt.

Its mid-term ambition is to achieve EBIT growth of between 7-10% over the next three years.

The results come after TUI delisted from the London Stock Exchange in June, after 98.4% of investors decided to leave the exchange to trade solely on the Frankfurt market.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said: "The sun continues to shine on holidaymaker TUI, and a strong final quarter gave management the confidence to reiterate underlying operating profit guidance, looking for at least 25% growth this year. Markets remain a little more optimistic than this seeing room for more than 30% growth, leaving a little room for disappointment if the final outcome doesn’t bridge this gap.

"The markets and airlines segments have continued to soar this summer, with bookings and average selling prices both heading in the right direction. That trend’s continuing into the coming winter season as consumers refuse to let up when it comes to prioritising spending for leisure experiences.

"Holiday experiences are on track to deliver against the group’s upgraded expectations too. Hotels and resorts are set for further growth in the new year as TUI continues to expand its portfolio, offering customers new choices in key destinations."

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