TUI's fortunes in marked contrast to its ailing rival

TUI, Europe's biggest tour operator, posts record profits, despite unrest in the Middle East and North Africa.

TUI, Europe's biggest tour operator, yesterday reported record profits, despite unrest in popular holiday destinations including Egypt and Tunisia.

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Its UK rival Thomas Cook, meanwhile, has been struggling under the burden of its debts, and has been hard hit by the unrest in North Africa and weak consumer confidence.

"We are very pleased with our robust performance in 2011 and have delivered another year of profit growth, against a backdrop of unrest in key North African destinations and weak consumer sentiment in some source markets," said Peter Long, the chief executive of TUI Travel, which trades under names including Thomson and First Choice.

Operating profit for the year to the end of September rose 18 per cent to a record £471 million (Dh2.7 billion), TUI said. UK profits were boosted by more sales of exclusive holidays and online bookings.

"Through our new business improvement programme we have self-help measures in place to help offset the difficult macro-economic environment, including clear plans … for Germany and France," Mr Long said.

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