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Mexico's swine flu outbreak cost Tui Travel £7 million in lost profits but the package tours group said today that Brits are now flocking back to the Central American country to take advantage of knockdown prices.
The company behind First Choice and Thompson was hit by the brief suspension of trips to the country and was forced to refund customers who returned home early.
But bookings to destinations in Mexico shot up 27% in July in comparison with the previous year, helped by pent-up demand.
Hotel owners in Mexico have slashed their prices to encourage travellers to return, so Tui has maintained margins but the cost of a holiday there has fallen. The group resumed flights to the country at the end of May.
Tui said it remains on track to meet forecasts for the year as most people refuse to ditch their week in the sun, despite the recession. Winter holidays have been hard hit, however, and Tui has slashed capacity in response.
Revenues dipped by 1% in the first half of the year to £3.6 billion but underlying operating profits climbed by 57% to £102 million as margins improved.
More and more travellers are booking at the last minute, chief executive Peter Long said, although some people have already organised their summer break for next year.
Long said early demand for next summer has been encouraging and that bookings are in line with the previous year.
