TUI, the London-listed German travel operator, has reported a strong booking performance and expects a very good summer season. The company has seen promising growth in its activities segment and has achieved an overall profit for the first time since the beginning of the pandemic.
Summer Bookings and Capacity
Current summer bookings for TUI are 6% higher compared to the previous year, with an encouraging pricing trend. Already, 86% of the summer capacity has been sold, showing a positive outlook. In addition, group-wide bookings are at 95% of the levels seen in summer 2019, indicating a strong recovery.
Strong Demand in April-to-June Period
During the period from April to June, TUI experienced high demand for holidays, resulting in the number of guests rising from 5.1 million to 5.5 million. This boost in customer demand has contributed to the company's positive financial performance.
Impressive Earnings Results
TUI's earnings before interest and taxes (EBIT) for the quarter ended June 30 were EUR175.4 million ($192.2 million), compared to a loss of EUR42.5 million in the previous year. The underlying EBIT, which excludes exceptional and one-off items, reached EUR169.4 million, a significant improvement from a loss of EUR27 million.
Positive Outlook for 2023
Looking ahead, TUI expects a substantial improvement in underlying EBIT for fiscal year 2023. The company remains confident about its performance, stating that summer 2023 is progressing well and demand for holidays remains high. TUI aims to continue its profitable growth by driving transformation and investing in additional revenue and earnings areas.
Revenue Growth and Future Preparedness
TUI's revenue for the quarter rose to EUR5.29 billion from EUR4.43 billion. The company has exceeded the revenue estimate of EUR5.01 billion, as per analyst expectations. Furthermore, TUI anticipates costs of approximately EUR25 million due to recent wildfires in Rhodes, Greece. However, the company aims to better manage and mitigate the impact of similar events in the future.
TUI is optimistic about its current performance and looks forward to a successful year with substantial improvements in earnings. By focusing on transformation and strategic investments, TUI aims to ensure long-term profitability.
