Bigger is better for holiday business Tui as it eyes a 15% profit increase after merger

Tui, the world’s biggest holiday business after its £5.6 billion merger of the two German and UK businesses of the same name, has said its operating profit will rise as much as 15% this year.

That’s thanks to holidaymakers paying slightly higher prices for summer and winter breaks.

First-quarter revenues were up 5.4% at €3.5 billion (£2.6 billion), and losses over winter, traditionally the tougher side of the year for travel firms, narrowed to €107.9 million from €141.1 million a year earlier.

Tui said it is on track to hit €1 billion earnings in the financial year; the merged business is planning to “streamline” its airline business, which includes six different brands, and wants more cooperation between its cruise units Thomson Cruises and TUI Cruises.

Tui’s joint chief executives, Friedrich Joussen and Peter Long, added: “The integration of our businesses is well under way. We remain confident of delivering full-year underlying operating profit growth of 10% to 15%.”