Tui said strong performance in its northern region, which includes the UK and Ireland, had also allowed the group to upgrade its outlook for its full 2024/25 financial year, despite bookings for summer running 2% behind last year. The group also noted "a continuing later booking trend".

During the three months to the end of June, Tui’s underlying earnings before interest and tax (ebit) increased by more than a third (38%) year-on-year from €232 million (£201 million) to €321 million (£278 million) – the group’s strongest showing since Tui AG’s merger with Tui Travel Plc in 2014.

Earnings before tax, meanwhile, almost doubled (+94%) from €139 million (£120 million) this time last year to €270 million (£234 million) on increased revenue (+7%) of €6.2 billion (£5.4 billion), up from €5.8 billion (£5 billion) during Q3 2023/24.

Tui saw the biggest year-on-year jump in performance in its northern region, where underlying earnings almost tripled year-on-year from €14 million (£12 million) to €45 million (£39 million).

This compares with earnings of €25 million (£22 million) in its central region and a steeper €21 million (£18 million) loss in its western region, down from €19 million (£16 million) last year.

Tui said on the basis of "strong performance during the first nine months of the year" and "initial positive indications for July", it felt comfortable raising its guidance for the full year.

It now expects full-year earnings for the 12 months to 30 September 2025 to come in 9%-11% higher than last year, when the figure was €1.3 billion (£1.1 billion). It also expects revenue to end up 5%-10% higher than last year (€23 billion, £20 billion) but likely at the "lower end" of this guidance.

Sebastian Ebel, Tui Group chief executive, pinned the upturn on the group’s ongoing efforts to reduce seasonality and costs, diversify its offering and expand into new markets. "The third quarter and the first nine months of the financial year 2025 were strong," he said. "Our strategy is paying off."

Ebel said Tui’s performance came despite operating in a "continually challenging market" characterised by economic difficulties, Europe-wide summer heatwaves and the conflict in the Middle East.

He said standardising Tui’s platforms globally was reducing the group’s cost base while allowing it to offer more products in more destinations globally, and in more source markets, adding its offering remained based around "the proven security" of package holidays.

Ebel said Tui "continues to rely on the proven sales strength of our own and partner travel agencies", albeit while stressing Tui would continue to seek to drive more sales through its app.

Other developments highlighted by Ebel include Tui expanding its portfolio of own-brand hotels further in Africa and Asia, developing "destination clusters" and taking delivery of a new Tui Cruises InTUItion class vessel next year.

Tui said it was operating in a "highly competitive environment" this summer with a continuing late booking trend. It said business had been impacted by the hot June and July weather in many of its source markets, and the ongoing conflict in the Middle East.

However, while bookings for the summer are currently down by 2%, Tui has seen average pricing increase by 3%. It added bookings for winter 2025/26 were "positive" albeit at an early stage.