TUI Travel PLC (TT.LN) Thursday said higher average selling prices will see the company perform in line with management expectations for the year ending Sept. 30.

Despite a difficult trading environment for the period since Nov. 27 and anticipated flat bookings, Europe's largest travel operator said in a statement, "we are achieving our load factor and margin targets due to our ongoing management of capacity, and we expect this to continue through the summer season."

In the U.K., average selling prices on charter holidays for the winter 2008/09 period were up 10% on the same period a year ago but the number of customers fell 12%. However, margins were in line with a year ago.

A weaker sterling against the euro and U.S. dollar saw strong demand for destinations in Egypt, the Dominican Republic and Mexico.

Excluding the U.K., the company expects weaker demand for summer 2009 and has cut capacity accordingly. That has produced average selling prices "significantly ahead of last year," and TUI Travel added it continues to focus on recovering input costs and achieving fiscal-year margin targets.

Demand for all-inclusive winter holidays was significantly ahead of last year. However, total program load factors for the winter season was two percentage points lower than last year at 31%. So far, capacity has been reduced 17%.

TUI Travel shares have fallen 3.9% since the start of the year and Wednesday closed at 225 pence.

 
   Company Web site: www.tuitravelplc.com 
 
   -By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299; kaveri.niththyananthan@dowjones.com
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