TUI ‘delighted’ with first post-merger results
TUI has cut its first quarter losses following the merger of its two travel arms, TUI Travel in the UK and its German counterpart TUI AG.
Losses during the quarter of the current financial year were down 23% to €107 million. During the same period of 2013/14, the Group lost €141 million.
However, this year’s figure included profit from the sale of a hotel, Riu Waikiki. Excluding that figure, the group saw a 15% improvement in earnings.
Chief executives Peter Long and Friedrich Joussen said there were ‘delighted’ with the first set of results as TUI Group, announcing in a joint statement that the figures were in line with expectations.
Its Hotels & Resorts division almost doubled its operating profit from €26 million in the first quarter of last year to €51 million this year while Cruises delivered a profit of €2 million compared to a loss of €16 million the previous year.
"We have continued to grow unique holidays and online bookings across all key source markets and expect to deliver growth in the underlying operating result in the remainder of the year," said the Group.
"Following completion of the merger between TUI AG and TUI Travel PLC in December 2014, the integration of our businesses is well underway, with a new Executive Committee in place.
"Based on this result and our current trading, we remain confident of delivering full year underlying operating profit growth of 10% to 15%."
TUI has sold 84% of its mainstream winter programme, with higher average selling prices in most source markets.
Summer bookings are in line with last year, but average selling prices are 1% higher. Mainstream Summer 2015 online bookings are up by 8%, boosted by the sale of unique holidays, which now account for 78% of all bookings.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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