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LONDON, Sept 26 (Reuters) - TUI Travel
TUI, the world's largest tour operator, on Thursday increased the profit outlook it gave only seven weeks ago to 11 percent from 10 percent previously, while Thomas Cook said full year profits would be in line with market expectations.
At 0743 GMT, shares in TUI were 1.7 percent higher at 362 pence, making it the highest climber on the FTSE 100 Index. Thomas Cook was down 7.2 percent to 144 pence.
TUI, which owns the Thomson and First Choice brands, said it had seen a strong high-season summer with most of its programmes almost fully sold, delivering an 8 and 10 percent rise in revenue from Britain and the Nordics respectively.
In contrast, Thomas Cook, the world's oldest travel operator which is half way through a three-year turnaround plan, said it experienced slower trading in summer compared to last year, as expected, after unusually bad weather in Europe in 2012 drove up late bookings.
Both companies said they were confident of coping with the impact of the recent unrest in Egypt, historically a popular destination with sunshine-seeking British, Russian and German holidaymakers during Europe's winter.
TUI said it had sold 31 percent of its winter programme so far and was starting to increase capacity in other destinations to accommodate those who do not want to travel to Egypt, although it has recently restarted holidays there.
Thomas Cook said the winter season had started more slowly than last year due to the warm weather in Europe and geopolitical events, but said its move to reduce capacity in line with lower demand, wider range of routes and higher selling prices would support profits.
(Reporting by Brenda Goh; Editing by Paul Sandle and Kate Holton)
((brenda.goh@thomsonreuters.com)(+44 020 7542 2230)(Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
Keywords: THOMASCOOK/
