Travel giant Tui is considering delisting from the London Stock Exchange in the latest blow to the City.

Europe’s largest travel operator said it had been approached by shareholders concerned about whether its current strategy of dual listing on the London and Frankfurt stock exchanges was “optimal and profitable”.

Management said there had been a “marked” shift in shareholding from the UK to Germany over the past four years.

As a result, the company’s AGM in February will consider withdrawing from the London Stock Exchange.

The decision must be supported by 75% of shareholders to be effective.

A statement issued on Wednesday said the following: “In light of the views expressed by shareholders and any further shareholder feedback, the executive board is currently considering whether an upgrade to the Frankfurt prime listing to include MDax and delisting from the London Stock Exchange would be in the best interests of shareholders.”

Tui’s potential departure from the Square Mile will increase pressure on the London Stock Exchange, which has suffered a number of high-profile exits recently.

These include building materials group CRH and bathroom fittings supplier Ferguson, which have both relocated to the US. Chipmaker Arm has also abandoned London in favor of New York.

In a statement, Tui said, “The potential benefits of simplifying the listing structure and inclusion in MDax are centralization of liquidity, providing a clearer investment profile under a single listing, potential benefits to European Union requirements for ownership and control of airlines, potential enhancement of Tui’s share profile through expected prominence in the MDax50 and efficiency gains, and cost reductions.”

Tui announced its delisting plan at a time when it achieved a full-year profit thanks to record revenues.

The group reported a pre-tax profit of €551.2m (£471.9m) for the year ended September 30, against a loss of €145.9m in 2022.

Underlying profit more than doubled to €977.2m as revenue hit an all-time high of €20.7bn – “significantly” higher than before the pandemic, according to the group.

Tui said it expects underlying profit to grow by at least 25% in the new financial year, with sales up another 10%.

Average vacation and airfare prices rose during the year and will continue to rise in the winter season, with bookings up 11% and average prices up 5%.