Thomson counts the cost of Egypt strife
Thomson Holidays owner TUI Travel today warned the political unrest in Egypt and Tunisia could hit earnings by up to £30 million.
The company said it had cancelled holidays to the riot-hit countries, as well as incurred the costs of returning travellers, which could hit its second-quarter results by £25 million to £30 million.
TUI chief executive Peter Long said: "We are closely monitoring events in Egypt and Tunisia and the safety of our customers is our primary consideration."
Violent demonstrations against the government in Egypt have grabbed attention across the world for the last week after similar action in fellow North African country Tunisia. Hundreds of Britons fled both destinations as the disruption unfolded.
The warning came as TUI posted a pre-tax loss of £134 million in the three months to December 31, compared to a £166 million loss in the same period last year.
The company said it had cancelled trips to Egypt from markets including Germany, France and the Netherlands, but it was still operating holidays to Red Sea resorts from the UK.
Even with the UK to Red Sea packages open, if the company is unable to operate holidays from any other markets for the rest of the winter it will cost TUI at least £20 million.
The company said early indications suggest customers are choosing to rebook to alternative destinations, and it is taking action to "remix" programmes in line with demand.
In Egypt, protesters are demanding that President Hosni Mubarak, who has ruled for 30 years, step down immediately. They have clashed with supporters of the president on the streets of Egyptian cities, including the capital Cairo.
Earlier in the month, similar scenes were witnessed across Tunisia, which led to the ousting of President Zine El Abidine Ben Ali.
Last week, TUI said booking volumes for near-term departures since its previous trading statement in early December were down 1% as Arctic conditions shut off British airports and stopped would-be holidaymakers visiting its shops. But the company said total revenues were up 6% in the first quarter to £2.69 billion.
Broker Numis Securities cut its full-year underlying earnings forecast by £30 million to £446.7 million following the update.
Numis analyst Wyn Ellis said he had "little confidence" in the trading outlook, particularly in the UK.
The Independent travel offers: Discover a world of inspiring destinations
- 1 A daily walk 'can add seven years to your life'
- 2 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 3 Chrissie Hynde says women who 'wear high heels and dress provocatively entice rapists'
The 50 Best spas
Natural wonders in the UK: From Giant's Causeway to Durdle Door
What's it like on board North Korean airline Air Koryo - the worst in the world?
The Atlas of Beauty: Photographer travels around the world to capture cultural diversity through stunning portraits of women
The 10 Best hiking boots
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
£26000 - £29000 per annum: Recruitment Genius: The Product Development departm...
£23000 per annum: Recruitment Genius: The Visitor Fundraising Team is responsi...
£30000 - £35000 per annum: Recruitment Genius: This is an opportunity to join ...
£30000 - £34000 per annum: Recruitment Genius: The Estates Team of this group ...