TUI share price surges as group updates on trading

TUI Group’s (LON:TUI) share price has climbed higher in London this morning, with investors reacting positively to news that the company’s full-year earnings guidance remained unchanged. The statement follows the collapse of smaller London-listed rival Thomas Cook (LON:TCG) yesterday.

As of 08:55 BST, TUI’s share price had added 1.04 percent to 910.80p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.23 percent higher at 7,342.62 points.

TUI updates on trading

TUI announced in a statement this morning that its financial 2019 year was closing out in line with the company’s expectations and as a result, the company reiterated its underlying EBITA guidance of about up to minus 26 percent, compared with underlying EBITA rebased in FY18 of €1.18 billion.

Going forward, TUI expects the ongoing external challenges seen this year to persist in the new financial year. The company meanwhile plans to focus on becoming more cost competitive, selectively grow its Holiday Experiences business and scale up its digital platforms in new markets and Destination Experiences.

The tour operator’s chief executive Friedrich Joussen addressed the collapse of Thomas Cook, saying that it was preparing measures to support, including offering replacement flights to TUI customers booked on the collapsed company’s flights.

“We are currently assessing the short term impact of Thomas Cook’s insolvency under the current circumstances, on the final week of our FY19 financial result,” he pointed out.

TUI said that it will publish its annual report on December 12.

Analysts on tour group

UBS reaffirmed the FTSE 100 tour operator as a ‘sell’ today, without specifying a target on the TUI share price, while Shore Capital remains bullish on the company with a ‘buy’ rating. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation.