Tour operator TUI expects a strong summer season ahead despite higher overall prices.

It comes as the company posted better than expected quarterly results.

It says about 60% of summer capacity is sold even with prices up by 4% on average compared to 2023.

UK summer capacity is currently 65% sold for the season.

“Both our ongoing operations in UK and Nordics reported higher results supported by increased volumes at higher prices.”

TUI’s revenue grew 16% to a record €3.6 billion in the last quarter

The cruises and hotels business units performed best, it said.

It narrowed losses to €189 million with short and medium-haul destinations selling well, like the Canary Islands and Egypt.

“The group’s business model allows it to flexibly shift capacity from the eastern to the western Mediterranean,” TUI said of the uncertain situation in the Red Sea region.

“The first two quarters of the financial year were very successful in operational terms. It clearly demonstrates the resilience of our business model,” CEO Sebastian Ebel said.