TUI Travel profits up in advance of merger

British travel group TUI Travel, weeks away from completing a merger with TUI AG, reported a forecast-beating 11 percent rise in underlying profits on Thursday .

The company and TUI AG, its biggest shareholder, reached an agreement in September on the terms of a €6.5 billion merger to create the world’s largest leisure tourism group. The deal will complete on December 17th.

TUI Travel, whose many brands include Thomson and Airtours, said it was "pleased with current trading", with 63 per cent of winter holidays sold, on average selling prices up 1 per cent.

In contrast, rival Thomas Cook warned last week that the trading environment was proving tough and it expected growth to moderate. It also replaced its chief executive.

– (Reuters)