- Tui’s pre-tax losses fell 37.9% to €403.1 million in the six months to March
- During the last three months of the period, Tui’s revenues reached a record of 3.6 billion euros.
Tui Group has reduced its first half losses and maintained its annual forecast thanks to its best second quarter result in its history.
Europe’s largest travel company revealed pre-tax losses fell 37.9 per cent to €403.1m (£346.6m) in the six months to March.
Revenue reached a record 3.6 billion euros in the last three months, an increase of 16 percent on the previous year, thanks to the excellent performance of its cruise and hotel businesses.
Improved performance: Tui Group revealed pre-tax losses fell 37.9 per cent to €403.1m (£346.6m) in the six months to March.
The first segment benefited from higher occupancy levels, with its Hapag-Lloyd business reaching 100 percent capacity and average daily rates increasing by about a fifth to 221 euros.
At the same time, its accommodation division was boosted by the increase in the number of clients at Riu hotels and trips to destinations such as Mexico, the Canary Islands and Cape Verde.
Tui’s airline business also enjoyed strong demand, with half-year turnover increasing from approximately €800 million to €6.7 billion, with Mexico, Thailand and the Dominican Republic being popular destinations for long-haul travel.
The Hannover company reported that it sold 60 percent of its summer program, five percentage points more than last year.
In the UK, summer bookings are up three per cent and almost two-thirds of the season has been sold.
Tui acknowledged that trade could be affected by “current macroeconomic and geopolitical uncertainties,” particularly in relation to the recent Middle East crisis.
Flights to countries such as Israel and Egypt have been significantly reduced since the Gaza conflict broke out last October.
Tui still expects its revenue this year to rise by a minimum of 10 percent, while its underlying profits will grow by at least a quarter.
Adam Vettese, an analyst at eToro, said Tui’s results were an “encouraging sign heading into the peak summer season.”
He added: ‘Despite some lingering economic uncertainty, there appears to be no lack of demand. Inflationary pressures have begun to ease as consumers have more disposable income for travel.
Tui’s results come as it prepares to exit the London Stock Exchange in favor of Germany, which many shareholders have argued would simplify its structure and increase liquidity.
In recent years, many companies have left the London markets or changed their primary listing to another exchange, reasons given including the possibility of higher valuations abroad.
tui actions They were down just 0.2p to 599.5p on Wednesday afternoon and remain well below their pre-pandemic levels.