German group TUI AG , said it expected to post a full-year net profit and was on track to reinstate its dividend, signalling confidence it can weather strong economic headwinds.

The owner of Europe's largest tour operator TUI Travel also said on Wednesday turnover and operating earnings should grow moderately in its 2011/12 year to end-September.

The environment will remain challenging in the light of weaker economic growth in Europe and persistently high energy costs, chief executive Michael Frenzel said.

We see the further consolidation of our finances as the top priority considering the current financial market environment. But of course we have resolved to re-establish our ability to pay dividends as soon as possible, and we see ourselves on track.

TUI, which last paid a dividend in 2007, of 0.25 euro, was seen paying 0.07 euro for 2011/12 and 0.28 euros for the following year, according to Reuters data.

ALL LINES BETTER THAN EXPECTED

TUI said underlying earnings before interest, tax and amortisation (EBITA) rose 1.8 percent to 600 million euros (505 million pounds) in its 2010/11 year. That included an 83 million euro hit from unrest in North Africa and compared with a forecast for 590 million in a Reuters poll.

Net profit after minorities fell three quarters to 23.9 million euros in 2010/11. It was forecast rising to 60 million euros for 2011/12.

TUI shares were up 7.6 percent at 4.1830 euros by 1055 GMT, the biggest gainer in a 0.2 percent weaker German midcap index

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The reported results are better than expected in all lines. All divisions contributed to this positive result, Equinet Bank analyst Jochen Rothenbacher said.

TUI Travel, which takes 30 million people on holiday each year, earlier this month reported better than expected full-year profit, in stark contrast to rival Thomas Cook, which requested help from banks after a series of profit warnings, leading to a restructuring on Wednesday.

TUI Travel said, however, bookings for the winter season had slowed and it was seeing late bookings, which are more common when times get tough for consumers.

French holiday operator Club Med said on Friday winter season bookings had slowed and it was cautious over the prospects for 2012.

SHIPPING OUT

Container shipping business Hapag-Lloyd , which TUI has been trying to exit, contributed a 2 million euro loss to the company's full-year result.

TUI inched closer to exiting Hapag-Lloyd on Tuesday by deciding to tender a 33.3 percent stake in the container shipper to its majority shareholders, the Albert Ballin consortium.

(Reporting by Maria Sheahan and Harro ten Wolde; Editing by Dan Lalor)