Shares have risen by 2% after the travel firm revealed in a pre-close trading update for the six months ending March 31 that its revenues for the winter season were up 3% with a "particularly good performance" in the Canaries, Spain and long-haul destinations.
TUI admitted there has been "subdued" demand for bookings to Turkey. The country has fallen victim to a number of bombings of late, while travel restrictions remain in place at Egypt's Sharm El Sheikh resort following the downing of a Russian airliner in October.
The company said: "Consumer sentiment continues to be adversely impacted by geopolitical events in Egypt and Turkey."
TUI chief executive Friedrich Joussen added: "The group has again demonstrated the flexibility of its business model and the ability to remix destination capacities to match demand and as a result demand and pricing has remained resilient overall despite the impact of geopolitical events."