TUI: Tourism is strong but shipping is struggling

TUI, the leading European tour operator, voiced optimism on prospects for its tourism activities this year but was downbeat on its maritime shipping unit.

TUI posted an operating profit of €602 million last year, an increase of 30 per cent, on a 14 per cent rise in sales to around €25 billion.

Net profit fell however to €142 million owing to restructuring costs, a company statement said.

This year, TUI expects to record a "positive net result" but will likely see a drop in its operating profit, boss Michael Frenzel said in the group's annual report.

In the tourism sector, TUI forecast stable operating earnings at most units and even an increase at its TUI Travel division.

But prospects for the Hapag-Lloyd shipping container company this year were less bright, the statement said.