TUI strained by big shift in travel trends as winter loss deepens
TUI has blamed over-capacity in Spain, the late Easter and the forced grounding of its 737 MAX aircraft for a 36% increase in its first half net loss to €287 million.
It also pointed out that last year’s result was boosted by €38 million by the sale of several RUI hotels, which was not repeated this year.
In a financial update, the operator said: "The results of the first six months are unilaterally strained by significant shifts in travel trends and destinations for the full year 2019: overcapacities to Spain, in particular the Canaries, and consequently lower margins are having an impact in the first half of full year 2019, whilst the positive development of bookings to Turkey and the Eastern Mediterranean will become visible only in the second half as most of the countries in this region are summer destinations."
It also added that the late Easter, which fell in the third quarter this year, took out a further €22 million from its first half earnings.
Group turnover was up 1.7% to €6.68 billion during the first half, but summer bookings are 3% down on this time last year, although the average selling price is 1% up.
The group reiterated that earnings for the full year would be down 17% on last year’s €1.177 billion, assuming that the 737 MAX, which have been grounded worldwide for safety reasons, will resume flying by mid-July.
The grounding of the aircraft has already cost TUI €200 million. If it isn’t clear this month that the planes will be airborne again by the summer peak, TUI said it will have to extend its contingency measures for the rest of the season, which will cost it an extra €100 million.
Announcing the first half results this morning, TUI CEO Fritz Joussen said: "TUI is on track, both strategically and operationally, and is well positioned. That is why 2019 will be another solid year."
He insisted the group’s core businesses are ‘highly profitable and positioned for growth’.
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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt