Tui’s losses narrow to £525m as the holiday giant hails strong summer holiday demand and hopes to return to profit.
- Last quarter was ‘significantly improved’ with relaxation of Covid rules
- He told shareholders that he could be back in profit by the end of the year as a result.
- In terms of sectors, cruise ships are emerging as the slowest area to recover
Vacation giant Tui more than halved losses in the past six months compared to 2021 levels as it hailed a strong recovery in customer demand for the summer.
The Hannover, Germany-based company reported a £525m profit loss in the half year to March 31, following a £1.1bn loss in the same period a year earlier.
On Wednesday he told shareholders that he could be back in profit by the end of the year as a result.
Holiday giant Tui has more than halved its losses over the past six months as it hailed a strong recovery in customer demand for the summer.
Tui said he expects a “strong” summer and has already reached 85 percent of the booking levels seen in the summer of 2019, before feeling the heavy impact of the pandemic.
The latest quarter “improved significantly,” Tui added, as the easing of pandemic restrictions helped boost bookings.
The travel group said its UK operation “continues to lead the way” for summer bookings, currently showing an 11 per cent increase compared to levels seen in summer 2019.
He expects overall bookings for the summer to “almost catch up” to 2019 levels.
In terms of sectors, cruises are emerging as the area of the business that will recover the slowest.
However, Tui noted that since the beginning of April, all 16 ships from its three cruise brands, which comprise Mein Schiff, Hapag-Lloyd Cruises and Marella Cruises, are back in operation, with bookings currently “trending to higher rates.” high…compared to previous years’.
In general, Tui has been fueled by tourists who book “shorter term” and also spend more money on each trip.
Meanwhile, revenue for the last half year rose more than fivefold to £3.8bn compared to the same period a year earlier, when the company was still struggling with Covid-19 restrictions.
Commenting on the results, Tui CEO Fritz Joussen said: ‘High travel demand and very good business performance confirm our forecasts.
‘2022 will be a good financial year. Capacity nearly reaches pre-2019 coronavirus level.
“After two years of crisis, we expect Tui to return to profitability in the current year with a significantly positive underlying EBIT (earnings before interest and taxes).
‘This is the basis for new growth.’