Tui is lifted by a wave of Britons heading to Mexico

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More Britons going on Thomson holidays to Majorca and Mexico, and paying more to do so, yesterday gave its owner Tui Travel confidence that its underlying operating profit will grow 10 per cent this year.

Bookings for French holidays fell by a fifth in the three months to July but sales in the UK rose 11 per cent and the Nordics were up 10 per cent, Tui, the world's largest tour operator, said.

Its most popular destinations included Majorca, Ibiza, Mexico and Florida. underlying operating profit hit £76m in the three months to July. Chief executive Peter Long said 84 per cent of Tui's summer 2013 holidays have been sold. Average prices rose 7 per cent, but the City worried the heatwave might have hit late demand. James Hollins, an analyst at Investec, said investors could be disappointed Tui had not hiked its profit guidance. Those fears sent the shares down 20.7p to 380.8p.