TUI bets on summer boost

May 15, 2017 by  
Filed under EUROPE, News, tour operators

FRANKFURT, 16 May 2017: German travel group TUI on Monday confirmed its sunny forecast for the full year, betting on strong summer business to outweigh a net loss in the “challenging” first half.

TUI is in the midst of a transformation into a package holiday provider, focussing on its own hotels and cruises after taking over British subsidiary TUI Travel in 2014.

TUI, which runs its business year from October to September, booked a net loss of 363 million euros (USD397 million) for the six months to March.

That represented an improvement over the loss of 449 million euro recorded in the same period the previous year.

In the second quarter alone, the group reported a 3.9-percent decline in revenues to 3.4 billion euros compared with January to March last year.

Operating, or underlying loss worsened by 45% to 176 million euros, but was sapped by the late timing of Easter this year compared with last, TUI explained.

“Our guidance remains unchanged despite a challenging environment,” chief executive Fritz Joussen said in a statement.

TUI expects to deliver a 10% increase in underlying profit over the full year from 898 million euros last year.

The group noted that “current trading for summer 2017 is in line with expectations,” with customer numbers up on last year.

It pointed to higher demand for European and long-haul destinations like Greece, Cyprus and the Caribbean offsetting a fall in numbers to Middle Eastern sun spots in Turkey and Egypt in the wake of a spate of terrorist attacks.

The group is based in Hanover, north Germany, but listed on the London Stock Exchange.

© Agence France-Presse

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