A prospectus for the planned merger between the Tourism Division of TUI AG (“TUI Tourism”) and First Choice has been published by the two tour operators highlighting a positive future ahead. Trading for the financial year 2007 is in line with the Board’s expectations says TUI.

Overall demand in the travel market remains strong, with varying levels of growth in demand across TUI Tourism’s source markets. Overall, bookings for the 2007 summer season have started well, with customer numbers up 7.8 per cent. and booked revenues up 2.8 per cent. year-on-year, as at 22 June 2007. The Central Europe Sector, which includes the large German source market, recorded a good increase in bookings, although the Sector’s results are affected by start-up costs in connection with the restructur-ing of flight operations under the new brand TUIfly.com. Customer numbers and booked revenues have also increased in the Western Europe Sector, although the Northern Europe Sector has experienced a decline year-on-year due to difficult market conditions in the UK and Ireland.

Trading at First Choice Holidays for the financial year 2007 has also been in line with the Board’s expectations.
For the 2007 Summer season, the Mainstream Holidays Sector has performed in line with management expectations in what remains a challenging market. As at 24 June 2007, revenues were cumulatively up four per cent. on volume growth of one per cent.

The Specialist Holidays Sector has had an excellent start to the 2007 Summer season across all its businesses, with sales and volumes as at 24 June 2007 up 18 per cent. and 16 per cent., respectively, on 2006 as a result of increased demand for lifestyle and destination specialist products.

TUI AG will give the next detailed overview of business development with the publication of the quarterly balance sheet on 9 August 2007.