TUI shelves higher profits forecast

TUI AG, Europe’s largest tourism company, has abandoned its forecast for higher 2011 profits as unrest in north Africa put tourists…

TUI AG, Europe’s largest tourism company, has abandoned its forecast for higher 2011 profits as unrest in north Africa put tourists off and in the face of a tough shipping environment.

TUI reported an 11 per cent fall in third-quarter underlying earnings and said profits for the year to September would only be in line with the previous year.

TUI said the weak dollar had led to a 9 per cent decline in turnover at shipper Hapag- Lloyd in the quarter, although it had managed to keep freight rates almost stable.

TUI AG is a majority shareholder in TUI Travel which owns Falcon Holidays.

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– (Reuters)