LONDON: TUI Travel , Europe's biggest travel firm, said on Thursday that consumer demand for package holidays remains strong and it is confident that its expectations for 2008 and 2009 can be achieved.

The group, created last year from the tie-up of TUI AG's travel division and Britain's First Choice, reported a 39 percent increase in third quarter underlying operating profit to 65.4 million pounds.

(Reporting by Matthew Scuffham)