TUI reveals record sales as holiday giant considers taking flight from London Stock Exchange

Tui, which has a joint listing in the UK and Frankfurt in Germany, said that in the past four years there had been a “notable liquidity migration from UK to Germany” in its share ownership.

It is now considering delisting from the LSE and switching its prime listing to Germany’s MDAX market, which is the index below the Dax.

It said possible advantages of the move include “potential benefits to European Union airline ownership and control requirements”.

Publishing its full-year results to the LSE, it said underlying earnings soared 139 per cent to 977.2 million euros (£836.7 million) in the year to September 30 as revenues hit an all-time high of 20.7 billion euros (£17.7 billion) – “significantly” higher than before the pandemic.

It posted pre-tax earnings of 551.2 million euros (£471.9 million) against losses of 145.9 million euros (£124.9 million) the previous year.

Tui said it expects underlying earnings to jump by at least a quarter over 2023-24, with sales set to increase by another 10 per cent at least.

But in a sign that there will be little respite for travellers from higher holiday prices and air fares in 2024, the group said bookings for the winter season were up 11 per cent, with average prices up 5 per cent.

It added that early indicators so far point to a strong summer season next year, with bookings up 13 per cent and prices 4 per cent higher.

The firm also warned that its guidance for the year ahead comes amid “current macroeconomic and geopolitical uncertainties, particularly in the Middle East”.

It said it has seen a temporary slowdown in bookings to Egypt due to the war between Hamas and Israel.

Rival easyJet said last week that the Gaza conflict and threat to stability across the Middle East had affected bookings across the board in October and November.

Tui chief executive Sebastian Ebel said: “2023 was a good year for Tui.

“We have significantly strengthened our core business and have new growth areas.”

He added: “The current winter bookings and the first indications for next summer lead us to expect a further improvement in 2024.”

The company’s announcement said: “TUI has been recently approached by certain shareholders to discuss and understand whether the current listing structure is optimal and advantageous for the Company, and if the simplification of the listing structures and an inclusion in the MDAX would be beneficial for TUI.

"This is against the background, that in the period since the completion of the merger with TUI Travel and, more significantly in the past four years, the ownership of TUI AG’s shares and the liquidity on the exchanges has evolved significantly with a notable liquidity migration from UK to Germany.

"In light of the views expressed by shareholders and any further feedback from shareholders, the Executive Board is currently considering, if an Upgrade to a Prime Standard listing in Frankfurt with MDAX inclusion and a delisting from the London Stock Exchange would be in the best interest of shareholders.

"Potential advantages of simplification of the listing structures and an inclusion in the MDAX are the centralisation of liquidity, providing a clearer investment profile under a single listing, potential benefits to European Union airline ownership and control requirements, potentially enhancing TUI AG’s equity profile with an expected prominent position in the MDAX50 and creating efficiencies as well as reducing costs.

"While no decision has been taken, the Executive Board is therefore currently considering including the UK-Delisting resolution on the agenda for the AGM on 13 February 2024.

"Under the UK Listing Rules, the UK-Delisting will require shareholder approval of a delisting resolution with at least a 75% majority of the votes cast.”