(Bloomberg) -- TUI AG management urged shareholders to support plans to abandon its UK stock listing and trade primarily in Germany, ahead of a vote by investors on the proposal later on Tuesday.

The German travel company said shifting its primary listing to Frankfurt will simplify its trading structure, given that most of the shares already change hands in Germany. The single listing would also improve liquidity and provide support for EU airline ownership, TUI said in a statement on Tuesday.

TUI threw its support behind the move as the company reported earnings. The number of customers increased to 3.5 million in the first quarter, a 6% jump compared to the same period last year, indicating that people are spending more on vacations. Underlying operating profit in this traditionally weak first quarter was €6 million ($6.5 million), beating analysts estimates, while sales rose 15% to €4.3 billion.

The company reiterated its full-year outlook that calls for sales to rise at least 10% and underlying earnings before interest and tax to advance by 25%. 

TUI is set to announce the outcome of the vote on the London Stock Exchange and move to Frankfurt’s MDAX index after annual general meeting later in the day. A majority of 75% is needed for the approval.

The travel company is among firms including Ryanair Holdings Plc, Allied Minds Plc and YouGov that have considered delisting from the LSE as Brexit creates compliance issues for UK nationals and companies look for ways to simplify their corporate structure and lower administrative costs. The move would signal another blow for London’s stock market, which has faced challenges attracting major businesses and initial public offerings.

TUI rose as much as 8.2%, or €0.56, to €7.39, the biggest intraday gain since early December. The stock has gained just over 1% this year. TUI hasn’t had a positive annual stock return in the past six years. Deutsche Bank AG said in a note that TUI’s results confirmed an even stronger positive trend than previously expected.

(Updates with stock performance and Deutsche Bank note.)

©2024 Bloomberg L.P.