http://www.tuitravelplc.com/

TUI Travel is one of the world’s leading leisure travel groups, with over 220 trusted brands in 180 countries and more than 30 million customers.

‘Making travel experiences special’ underpins everything we do and keeps our focus on providing the unrivalled choice, professionalism and confidence our customers and stakeholders can rely on, now and in the future.

Our business is grouped into three sectors, comprising many of the best loved and market-leading travel brands worldwide – Mainstream, Accommodation & Destinations and Specialist & Activity. From the most popular holiday brands to an unparalleled collection of specialist travel providers, we offer the breadth and depth of experiences and expertise for every conceivable type of traveller.

We are a truly global business, employing approximately 55,000 people and operating in 31 key source markets worldwide. As a dynamic, influential company we are committed to responsible leadership in the travel sector. Our head office is in the UK and TUI Travel PLC is listed on the London Stock Exchange as a member of the FTSE 100 and FTSE4Good indices with the ticker code TT.

TUI Travel PLC (TT.:LSE) set a new 52-week high during Tuesday's trading session when it reached 338.40. Over this period, the share price is up 84.50%.

Interim Result

10 May 13 TUI Travel PLC [TT.]

Interims should make good reading tomorrow.

Agree d4,


TUI travel (LON:TT.) releases interim results covering the quiet part of the holiday calendar, so no doubt interest will focus on bookings for the summer season.

"The travel/holiday market has got off to a strong start in most core source markets, and in particular in the UK. We expect a continuation of the positive narrative that has accompanied the trading updates so far in 2013 – although, as we move through the summer, the outperformance is likely to moderate," suggests Peel Hunt's Nick Batram.

"The underlying seasonal EBIT [underlying earnings] loss in H1 last year was £317m and, on a like-for-like basis (excluding impact from empty leg accounting), we expect an improvement of c£20m-30m," reveals Batram, who rates the shares a 'hold'.

Interim Results for the six months ended 31 Mar 13

Highlights

- Operating loss reduced by £43m to £274m (excluding the impact of empty leg accounting2 which has no full year impact). Underlying H1 operating loss of £289m (H1 2012: loss of £317m).


- UK & Nordics source markets delivered H1 revenue growth of 5% and 10% respectively. UK underlying operating loss reduced by £22m to £103m2 and Nordics operating profit by £14m to £36m2.
- France operating loss reduced by £11m to £50m2. Our turnaround plans continue to deliver, offsetting difficult trading conditions in the tour operator.


- Business improvement programme progressing to plan with £17m of cost savings delivered.

- Interim dividend increase of 10% to 3.75p (H1 2012: 3.40p).


- Free cash outflow improvement of £233m to £774m. The net debt position excluding asset-backed financing of £369m (H1 2012: £205m) at 31 March 2013 was £680m (31 March 2012: £979m).




http://www.moneyam.com/action/news/showArticle?id=4592108

Duplicate

TUI Travel: Numis ups target price from 350p to 375p and reiterates an add rating. Panmure Gordon moves target price from 303p to 315p, while its hold recommendation is reiterated.

TUI Travel tips profits to take off
By Jamie Nimmo May 10 2013, 8:51am The second half of the year normally sees travel companies make a profitThe second half of the year normally sees travel companies make a profit

Tour operating giant TUI Travel (LON:TT.) has boasted that it will boost full-year underlying operating profits by 10%.

The owner of the Thomson and First Choice holiday brands cut pre-tax losses in the first half of the year to £346mln from £367mln in what is typically the loss-making season for travel companies. The second half of the year normally sees them benefit from the lucrative summer holiday period.

Summer sales at its British and Nordic business rose 13% and 14% respectively, with 58% of its overall summer programme already sold to holidaymakers.

The company lifted the interim dividend by 10% to 3.75p.

TUI’s chief executive Peter Long said: “Our strategy of focusing on unique holidays and putting our customers at the heart of our business continues to deliver strong growth.

“With our market leading brands and scale we have the ability to give our customers great holiday experiences, at terrific value, in a segment of the market that is increasing in popularity.”

He added: “Given current trading and the visibility we have within our businesses we anticipate full year underlying operating profit growth of at least 10% on a constant currency basis.”

Shares rose 1.6% to 346p each.

Invest in high-flying air travel

PROFESSIONAL investors are tipping the air travel industry to deliver strong returns in the coming decades, fuelled by huge rises in demand from emerging markets.

Global passenger traffic grew 5.9% in the 12 months to the end of March, with long-haul travel increasing even more than domestic, according to the International Air Transport Association (Iata). Emerging markets led the way, with flights from the Middle East, Latin America and Africa up by 15.6%, 11.8% and 8.2% respectively.

Iata expects air travel growth to continue at 5% on average for the next 20 years.

Sunday Times





























Invest in high-flying air travel


Airline industry firms are tipped to take off as passenger numbers soar


Anna Mikhailova Published: 12 May 2013

Comment (0)
Print

Shares in International Airlines Group rose by 53% in a year (Izabela Habur)

PROFESSIONAL investors are tipping the air travel industry to deliver strong returns in the coming decades, fuelled by huge rises in demand from emerging markets.

Global passenger traffic grew 5.9% in the 12 months to the end of March, with long-haul travel increasing even more than domestic, according to the International Air Transport Association (Iata). Emerging markets led the way, with flights from the Middle East, Latin America and Africa up by 15.6%, 11.8% and 8.2% respectively.

Iata expects air travel growth to continue at 5% on average for the next 20 years.

difficult to determine whether TT or TCG is a better investment at current levels .... both have their appeal, but while TCG has outperformed TT astronomically, TCG was of course starting from a very low base

indeed, the 5-year chart below (TT is blue; TCG is red) would imply TCG still has greater near-term upside, but input from others would be useful

Thanks for your input Cynic.
TUI Travel: UBS moves target price from 325p to 375p and maintains a buy recommendation.

JP Morgan Cazenove Neutral 350.50 350.50 350.00 360.00 Downgrades

Jefferies International Hold 350.50 350.50 300.00 315.00 Reiterates

Director sell;

14 May TUI Travel PLC TT. Peter Long 1,135,428 @ 350.50p £3,979,675.14

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 356.80. Over this period, the share price is up 101.70%.

In IC this week - Bullish Tui cranks up forecasts.

Tui makes a great play of its focus on customer satisfaction, but it has made investors pretty happy too. The tour operator cut losses more than expected during the traditionally weaker first half and, with the summer shaping up nicely management forecasts growth in annual under lying operating profit of at least 10%,
on a constant currency basis. A rush of late winter bookings, cost cutting and an early easter slashed half year losses from £317m to £289m - way ahead on consensus forecasts. Strip out the cost of returning empty planes at the end of the season and that drops to £274m. Profit margins and prices improved sharply, too, driven by UK and Nordic region. Analysts at Barclay's expect full year adjusted pre-tax profit of £434m, giving adjusted EPS of 29p ( from £390m and 26p in 2012)

The leisure industry was well represented on the leaderboard today, helped by the upbeat CBI service sector survey, with holiday operator TUI Travel gaining 11.55p at 370.05p .

Should I Buy Tui Travel Plc?
Fool.co.ukBy Harvey Jones | Fool.co.uk – 3 hours ago...


Tui Travel (LSE: TT.L - news) 's share price has been flying lately, up 33% over the past six months. Over 12 months, it has soared a gravity-defying 120%, compared to just 25% for the FTSE 100 (FTSE: ^FTSE - news) . Have I left it too late to hop on board?

Investors in Tui Travel, which owns Thomson and First (Other OTC: FSTC - news) Choice, have had plenty of fun in the sun but, like any holiday romance, it is difficult to sustain in the longer term. Yet the world's largest tour operator has staying power, grabbing profitable market share and cashing in on strong demand from sun-hungry, recession-sick Brits and Nordics. Tui (Xetra: TUAG00 - news) 's full-year underlying operating profit growth is on course to hit 10%, according to its recent interim six-monthly results.

Fun in the sun

Tour operators typically lose money in the winter, when seasonal bookings are sharply down, but Tui has been trimming its losses. Operating loss fell £43m to £274m, a drop of 14%. Pre-tax losses shrunk by £53m to £404m, despite a 1% drop in Q1 revenue to £5.39bn.

The annual summer holiday is one tradition most of us still like to observe. Summer 2013 bookings are up 15% in the UK, 11% in the Nordics and 9% in Germany, offsetting a slowdown in France. That's the benefit of diversification. The internet has whacked many a business model, but package holidays could be a surprise exception. Maybe we're getting a bit tired of DIY holidays, and want somebody to do the legwork for us, at an all-inclusive price. Tui has also fought back through its strategy of offering "unique holidays" unavailable elsewhere.

Tui or not Tui?

Management is confident, hiking the interim dividend 10% to 3.75p. That leaves Tui yielding 3.3%, close to the FTSE 100 average and nicely covered 2.2 times. This is forecast to rise to 3.9% by September 2014. Despite the recent share price surge, at 13.9 times earnings this stock isn't as pricey as I would have expected (it has largely been making up lost ground after a troubled 2010 and 2011). Earnings per share (EPS) growth of 11% in the 12 months to September and 10% to September 2014 suggest Tui could still have a little further to travel.

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Proposed Purchase of Aircraft

RNS


RNS Number : 9775F

TUI Travel PLC

31 May 2013




31 May 2013

TUI Travel PLC

Proposed Purchase of 60 Narrow-Bodied Boeing 737 MAX Aircraft



- Commitment to purchase 60 Boeing 737 MAX aircraft (subject to shareholder approval)

- Option and right to purchase up to a further 90 Boeing 737 MAX aircraft

- Multi-billion pound investment in the future of the business

- Continuation of unique holidays strategy



TUI Travel PLC ("TUI Travel" or "the Group"), one of the world's leading leisure travel companies, is pleased to announce, subject to shareholder approval, a commitment to purchase 60 narrow-body Boeing 737 MAX aircraft from The Boeing Company ("Boeing") as part of its fleet renewal strategy and move to Modern Mainstream.



Key points of the proposed transaction:



- TUI Travel will purchase 60 Boeing 737 MAX aircraft powered by LEAP-1B engines manufactured by CFM International ("CFM").

- TUI Travel has secured a significant discount to the list price of each aircraft through various concessions, allowances and support from Boeing. At current list prices, the value of 60 Boeing 737 MAX aircraft that TUI Travel is committed to purchase is $6.09 billion (GBP £4 billion).

- TUI Travel has the option to acquire up to a further 60 Boeing 737 MAX aircraft on the same terms as the committed 60 aircraft.

- TUI Travel has been offered the right to purchase a further 30 Boeing 737 MAX aircraft on terms to be determined at the time of exercising this purchase right.

- The delivery period for the 60 committed aircraft will start in January 2018 and run until March 2023.

- 40 of these aircraft will be the Boeing 737 MAX-8 variant and 20 of these aircraft will be the Boeing 737 MAX-9 variant. The 737 MAX-9 variant offers circa 10% more seat capacity than the 737 MAX-8.

- The Group will also be required to purchase eight spare LEAP-1B engines from CFM to support the committed 60 aircraft at an aggregated list price of $104 million (GBP £68.7 million). TUI Travel has, however, secured substantial price concessions against this list price.



Benefits of the proposed transaction:



- Following the delivery of the aircraft, TUI Travel will continue to enjoy the benefits of a modern, fuel-efficient and cost-effective aircraft fleet.

- The 737 MAX aircraft utilise a new technology engine type from CFM which Boeing asserts results in a 13% improvement in fuel efficiency and a 40% noise reduction over today's main competitors.

- Lower per seat costs than current generation aircraft and competitor products.

- The 737 MAX aircraft incorporate the best future engine technology for unprecedented levels of efficiency, reliability and passenger appeal.



TUI Travel owns and operates six European airlines across its Mainstream Sector - Thomson Airways, TUIfly, TUIfly Nordic, ArkeFly, Jetairfly and Corsair - with 141 aircraft in aggregate. Five of these airlines operate 114 narrow-body aircraft between them serving short and medium-haul destinations. Approximately 80% of the Group's airline passengers travelled on narrow-bodied aircraft to short and medium-haul destinations for their holiday during the last financial year. Having a modern, cost-efficient and reliable fleet is strategically important to the Group. In order to maintain cost competitiveness and support TUI Travel's aim to minimise the environmental impact of its activities, the existing narrow-bodied aircraft will need to be replaced in the next decade. The proposed transaction will ensure that the Group has sufficient aircraft to fulfil its long-term plans and that the expected accrued value justifies the cost of the purchase.



Peter Long, Chief Executive of TUI Travel PLC, said:

"A major part of TUI Travel's strategy is to provide our customers with unique holiday experiences they can only get from us. This multi-billion pound investment in the B737 MAX - representing the future generation of more fuel-efficient aircraft for our short and medium-haul programmes - will be a further driver in delivering this. It comes as the first of our Boeing 787s touches down in the UK to commence replacement of our long-haul fleet with best in class aircraft. We are leading the way in re-defining mainstream holidays and putting our customers at the heart of everything we do is integral to our continued growth. I can confidently say that being able to offer our customers the most advanced, comfortable aircraft, whether they are travelling with us to short or long-haul destinations, while reducing our environmental impact, will only strengthen our position."



Shareholder Approval The proposed transaction is a Class 1 transaction for the purposes of the UK Listing Rules and consequently is subject to the approval of TUI Travel shareholders to whom a circular setting out details of the proposed transaction will be sent to in due course. Lazard is acting as Sponsor to TUI Travel for the purposes of the UK Listing Rules in relation to the proposed transaction.

31 May Morgan Stanley 320.00 Equal weight
31 May Credit Suisse 377.00 Neutral

3 Jun Deutsche Bank 320.00 Hold