Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “TUI continues to deliver for holidaymakers and investors alike, confirming the previously announced beat of its full-year profit guidance, despite some weakness on the top line.
“TUI operates a diverse travel business, owning an airline, cruise ships, hotels, and resorts, serving over 20 million customers across more than 180 destinations.
“Record performances across its hotels, resorts and cruises are doing most of the heavy lifting.
“Strong growth here helped offset double-digit declines in its airline segment, which suffered from stiff competition and the negative near-term financial impact of significant investments as it looks to position itself for the future.
“Despite the impressive profit performance, it was the news that dividend payments are returning in the new year that stole the show.
“The first payment of €0.10 per share for the financial year just gone will be made in 2026.
“Following that, current market forecasts suggest that dividend payments could triple to €0.30 per share the following year, reflecting a respectable forward dividend yield of around 3.6 per cent.
“The outlook for the new financial year also looks promising, with winter bookings returning to positive territory, and TUI stating that bookings for the key summer period are “well ahead” of the prior year.
“As long as macroeconomic conditions don’t deteriorate, TUI’s medium-term guidance to grow underlying operating profits by 7-10 per cent per year looks achievable.”
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