Travel operator TUI has reported record revenues of €4.3bn in the first quarter of its 2024/24 financial year, ahead of a shareholder vote on whether to leave the London Stock Exchange.

The group confirmed this was up strongly across all segments of its business, increasing by a total of 15% against Q1 2023 (€3.8bn), driven by higher demand at improved prices and rates.

TUI is currently listed on the London Stock Exchange and the Frankfurt Stock Exchange, although the group’s shareholders are expected to this week vote for the travel group to quit London in favour of Germany, as reported by The Times.

Despite the vote, which would require 75% of shareholders to pass the London exit, TUI’s trading performance is set to see it increase its underlying EBIT by at least 25% for the 2023/24 financial year.

The group has achieved a positive Q1 group underlying EBIT of €6.0m for the first time, which was a hugely significant improvement of €159.0m on Q1 2023 (€-153.0m). TUI suggested this demonstrates the progress it has made across the business and underlines its strategic development.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, commented: “TUI has reported record sales as resilient consumers take to the air. Cost of living pressures and economic uncertainty aren’t stopping us from making our sunny getaways. A lot of the operational work TUI has done means it’s in a better position to capture this demand.

“Efforts to expand higher-end offerings in its hotel portfolio is a shrewd move and could help it remain competitive if lower earners start to pull back on booking holidays.”

TUI’s hotel and resorts portfolio improved on an already strong operational performance last year, supported by higher occupancies and increased rates.

In its cruises operation, the travel group also announced that a strong trading environment drove an increase in occupancy at higher rates, with all three of its cruise brands contributing to the upside.

“TUI operates a hefty cruise business too, and the cash flow dynamics of operating enormous ships makes it more exposed if and when holiday spending starts to wane,” added Lund-Yates. “So while the group’s done pretty much everything it can within its control, there remains an element of uncertainty. Unlike airlines with short-haul focus, a lot of TUI’s routes fall into the more expensive medium-haul bucket, further increasing risk.

“There are questions swirling about TUI’s potential decision to drop its London listing. The added complexity and cost of maintaining dual listings since Brexit has seen others decide to go down a similar route. While it does little to change the business case, the optics for London are less than ideal.”

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