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STORY: TUI confirmed its annual guidance and mid-term targets after a strong summer season on Tuesday (September 24).

Investors were excited by the news from Europe's biggest tour operator and shares rose 2%, hitting their highest level in two months.

TUI forecast operating profit to rise by a quarter this year, and projects 10% revenue growth.

One analyst said the "sun continues to shine" on the firm and markets see room for 30% annual profit growth.

Holidaymakers have increasingly turned to package holidays recently.

Soaring hotel and flight prices have revived demand for all-inclusive deals.

TUI said its summer bookings rose 6% on the year, reaching 14.7 million.

It further said the start of the winter season looked promising, with bookings up 7% at 1.8 million.

TUI is scheduled to report full-year results in December.