* FY operating profit 308 mln stg vs 310 mln stg last yr
* Recommends paying dividend of 0.5 pence per share
* Shares up 9 pct (Adds share price, analyst comment)
By Sarah Young
LONDON, Nov 23 (Reuters) - Shares in Thomas Cook rose 9 percent on Tuesday after it said it would grow in 2017,buoyed by future bookings and a turnaround plan for its Germanairline, and after it stuck to its pledge to pay its firstdividend in five years.
The British travel group remained profitable in 2016 despitedisruption in Turkey, and said confidence in its futureperformance meant the board was recommending a dividend of 0.5pence per share for the full-year 2016, keeping to guidance itgave last year.
Its shares hit a six-month high of 80.1 pence, whichanalysts said was due to reassurance given by the company thatit was on track to meet profit forecasts for the 12 months endedSept. 30 2017.
Profit is expected to grow 6 percent to 326 million poundsfor the financial year ended Sept. 30 2017.
That reassurance came after a series of bombings and afailed coup in Turkey this year forced Thomas Cook to makedowngrades in 2016 as it was forced to switch its holidayprogramme into Spain, Portugal and Croatia instead.
Despite those difficulties for the 12 months to Sept. 30,Thomas Cook posted underlying operating profit of 308 millionpounds ($382 million) broadly flat on the 310 million pounds itmade last year.
That result was ahead of an analyst forecast of 296 millionpounds, after its British and Scandinavian businesses performedmore strongly than expected.
The drop in demand for Turkish holidays in 2016 impactedThomas Cook much more than its larger rival TUI Group as Thomas Cook was the market leader, taking many more customersthere, particularly via its German airline Condor.
Exposure to Turkey plus overcapacity in the German airlinemarket, meant Condor dragged on Thomas Cook's profitability, andas such the company said it was implementing a turnaround planto try to improve profits by focusing the airline away fromshort-haul flights to longer-haul flights.
That plan would benefit group performance in the second halfof the year, it said.
For next year, Thomas Cook said bookings for the summer,when it makes all its profit, were ahead across all its markets.
Thomas Cook, whose shares have slid 35 percent since thestart of the year, looked like a buying opportunity followingthe results said some analysts.
"Given the opportunity to improve the underlying performance(including Condor) and lower finance charges as expensive debtmatures we see this rating as attractive, despite the obviousgeo-political risk," Shore Capital analyst Greg Johnson said.
Of the risks it faces, the company said that to date it hasnot been affected by Britain's vote to leave the EU, butmilitant attacks in parts of Europe, and ongoing security issuesin Turkey, Tunisia and Egypt have all affected demand forholidays over the last year.
($1 = 0.8062 pounds) (Reporting by Sarah Young; editing by Kate Holton and AlexandraHudson)
