TUI profits show weak UK market

TUI results are a mixed bag with weak UK market a concern

TUI figures for the year ending September showed an underlying improvement of 11% with an operating profit of £447 million on a reduced turnover of £13.5 billion.

This profit was reduced to a loss of £36 million after allowing for the cost of the ash cloud at £104 million and other one of costs. Whilst disappointing this was far better than the £94 million loss reported the previous year.

Weak trading primarily from the UK market was yet again a major factor although the last 3 months of the trading year showed a dramatic improvement after the problems with the ash cloud.

The austerity measures for the UK and the Euro zone are yet to bite and 2011 are yet to bite and the company is very cautious about the coming year.