TUI Travel, Europe's largest travel company, said holiday bookings for winter and next summer were encouraging, as it picked up customers following the collapse of several smaller operators.
TUI Travel, controlled by Germany's TUI AG (TUIGn.DE), also said net debt should fall more than it previously expected.
TUI Travel Chief Executive Peter Long said holidaymakers were seeking the security of a major tour operator after the failure of a number of smaller operators and airlines earlier this year. "We have benefited from this flight to quality," Long said.
British travel companies that have collapsed, leaving thousands of passengers stranded, include Kiss Flights, Goldtrail and Sun4U.
TUI Travel said winter sales in the UK were up 17 percent compared with the previous year, while summer 2011 booking volumes were up 5 percent in the UK and up 18 percent in the Nordic region, the two markets it currently has on sale.
The company said its summer 2010 programme, which runs to the end of October, was almost fully sold after a surge in late bookings.
Also on Tuesday, Dart Group (DTG.L), the owner of British low-cost airline Jet2.com, said its first-half profit would be ahead of last year, helped by a strong performance at its holidays company, Jet2holidays.com.
After warning on profit in August, TUI Travel maintained guidance for the year on Tuesday, confirming the rise in last-minute bookings had affected profitability, and said it was keeping a conservative view on the new financial year.
"Trading for 2011 is healthy - but it is early in the booking cycle... and so it is understandable for management to maintain their "prudent view" on 2011," Deutsche Bank analysts said.
TUI Travel shares were up 4.2 percent at 225.8 pence at 10:01 a.m. British time, topping the blue-chip gainers on the FTSE .FTSE in London.
PRUDENCE
Analysts also welcomed the reduction in net debt, with Deutsche Bank lowering its forecast for net debt for the year to Sept 2010 to 400 million pounds ($634 million) from 550 million.
TUI Travel was formed in 2007 from the merger of First Choice Travel with the tourism division of TUI AG.
The German group, which retains a controlling stake of about 57 percent, is expected to float its stake in container shipping group Hapag-Lloyd in advance of possibly combining TUI with TUI Travel in 2012.
Shares in TUI AG were up 0.9 percent.
TUI Travel, controlled by Germany's TUI AG (TUIGn.DE), also said net debt should fall more than it previously expected.
TUI Travel Chief Executive Peter Long said holidaymakers were seeking the security of a major tour operator after the failure of a number of smaller operators and airlines earlier this year. "We have benefited from this flight to quality," Long said.
British travel companies that have collapsed, leaving thousands of passengers stranded, include Kiss Flights, Goldtrail and Sun4U.
TUI Travel said winter sales in the UK were up 17 percent compared with the previous year, while summer 2011 booking volumes were up 5 percent in the UK and up 18 percent in the Nordic region, the two markets it currently has on sale.
The company said its summer 2010 programme, which runs to the end of October, was almost fully sold after a surge in late bookings.
Also on Tuesday, Dart Group (DTG.L), the owner of British low-cost airline Jet2.com, said its first-half profit would be ahead of last year, helped by a strong performance at its holidays company, Jet2holidays.com.
After warning on profit in August, TUI Travel maintained guidance for the year on Tuesday, confirming the rise in last-minute bookings had affected profitability, and said it was keeping a conservative view on the new financial year.
"Trading for 2011 is healthy - but it is early in the booking cycle... and so it is understandable for management to maintain their "prudent view" on 2011," Deutsche Bank analysts said.
TUI Travel shares were up 4.2 percent at 225.8 pence at 10:01 a.m. British time, topping the blue-chip gainers on the FTSE .FTSE in London.
PRUDENCE
Analysts also welcomed the reduction in net debt, with Deutsche Bank lowering its forecast for net debt for the year to Sept 2010 to 400 million pounds ($634 million) from 550 million.
TUI Travel was formed in 2007 from the merger of First Choice Travel with the tourism division of TUI AG.
The German group, which retains a controlling stake of about 57 percent, is expected to float its stake in container shipping group Hapag-Lloyd in advance of possibly combining TUI with TUI Travel in 2012.
Shares in TUI AG were up 0.9 percent.