(Reuters) – TUI confirmed its annual forecast and medium-term targets on Tuesday as Europe’s largest tour operator enjoyed a strong summer season, sending its shares up slightly in early trading on the Frankfurt stock exchange.

The German group announced that it expects a 25% increase in its operating profit and a 10% growth in its turnover this year.

Further scope for 30% annual profit growth would also be possible from a market perspective, according to Aarin Chiekrie, an analyst at Hargreaves Lansdown, who said “the sun continues to shine” on TUI.

The tour operator reported a 6% rise in summer bookings to 14.7 million, driven by a resurgence in all-inclusive packages and the recent collapse of German rival FTI. TUI also said the start of the winter season was promising, with bookings up 7% to 1.8 million.

At 09:45 GMT, the stock was up around 0.7% at 6.67 euros, compared to a gain of 0.6% for the Dax, after posting a rise of around 2% at the opening, its highest for two months.

(Report by Andrey Sychev, by Etienne Breban and Noémie Naudin, edited by Augustin Turpin)

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