Can travel giant Tui take flight from London Stock Exchange in style?

TUI is set to leave London markets with a flourish. Analysts expect record first-quarter revenue of €4.3bn and a maiden underlying operating profit.

TUI is set to report its half-year results on Wednesday ahead of an imminent flight from the London Stock Exchange to Germany.

The travel giant’s listing will be struck off on 24 June, a move that has fuelled City concerns over the state of the UK capital’s embattled equity markets.

The TUI share price has performed poorly ahead of the departure, falling over five per cent in the year to date despite strong demand for travel.

But forecasts suggest the Hanover-headquartered firm will leave London in style. Analysts expect record first-quarter revenue of €4.3bn and a maiden first quarter underlying operating profit, albeit a small one.

“There’s reason to be hopeful that things have moved in the right direction for the rest of the half,” Derren Nathan, head of equity research at Hargreaves Lansdown, said.

Winter bookings at TUI were up eight per cent at the last count, with average ticket prices up an average of four per cent in key markets.

The signs so far suggest this summer will be a busy one for the travel industry. British Airways owner the IAG forecast another record summer last week as it reported first quarter operating profits of €68m, ahead of analysts’ expectations.

“Focus will now turn to the all-important summer season, which early indications showed was following a similar trend,” Derren Nathan, head of equity research at Hargreaves Lansdown, said.

“But with just 32 per cent sold at the time of the first-quarter results, investors will be hoping for a much higher number and not at the expense of lower prices,” he added.

In TUI’s interim results in February, revenue reached €4.3bn, up 15 per cent, driven by higher prices and passenger numbers increasing by six per cent to 3.5m.

Full-year guidance anticipates revenue rising by at least 10 per cent, alongside a 25 per cent jump in underlying operating profit.

TUI rival On the Beach will also report next week, giving investors further insight into travel demand forecasts for the summer.