- TUI AG has reiterated its guidance of at least 10% growth in group underlying EBITA for 2016/17.

Chief Executive Friedrich Joussen said the Winter 2016/17 was closing out as expected, with a good performance by Hotels & Resorts, Cruise and growth in Source Market revenues, increasingly booked via direct and online channels.

"Overall, Summer 2017 remains in line with our expectations, with almost half of the Source Markets' programme sold, further openings scheduled in our Group hotel brands, and cruise ship launches in both TUI Cruises and the UK," said Joussen.

He added that TUI was progressing its transformation as an integrated tourism business focused on own hotel and cruise brands, financed by strong cash flows and proceeds from the disposals of Hotelbeds Group and Travelopia, creating a more competitive and less seasonal business for the long term.

"Whilst the impact of macroeconomic and geopolitical challenges is evident in certain source markets and destinations, our balanced portfolio of markets and destinations, our focus on growth in own hotel and cruise brands and our strong balance sheet put us in a robust position," Joussen said.

"We therefore reiterate our guidance of at least 10% growth in Group underlying EBITA in 2016/17."

TUI said total revenue was up 9% across its source markets, with rises in Northern Region (11% up), Central Region (7%) and Western Region (6%). Overall, customer numbers rose 5%.

While there were rises in the majority of underlying countries in these regions, the Nordics saw a single-digit drop off in each of revenue and customer numbers.

Story provided by