The company, which is Europe's largest travel operator, recorded underlying pre-tax profit of £473m, up from £390m for the same period last year.
In the UK, TUI recorded underlying profit growth of 27% to £251m. It stated that investment in "the digital customer service" proposition and its online platform was delivering clear benefits to its consumers.
The results have exceeded the higher end of TUI's growth roadmap target by 10%, and chief executive Peter Long told BBC Radio 4's 'Today' programme that this was due to package holidays being "back in vogue."
It follows the news last month that ailing rival Thomas Cook posted full-year results showing £13m of operating profit, after suffering a £170m loss a year earlier.
Long said in a statement: "TUI Travel is structurally well positioned with a robust business model that gives us a long-term competitive advantage.
"The business continues to deliver sustainable growth through our unique holiday experiences, increasingly distributed online, whilst leveraging its scale as one organisation.
"This in turn, will drive further value for both our customers and shareholders."