Tui cheers strong summer demand as losses slashed in half

The holiday firm told shareholders it could return to profit by the end of year as a result of recovering demand.

Henry Saker-Clark
Wednesday 11 May 2022 07:54
Tui said it expects overall bookings for the summer to ‘almost reach’ levels from 2019 (Gareth Fuller/PA)
Tui said it expects overall bookings for the summer to ‘almost reach’ levels from 2019 (Gareth Fuller/PA)

Holiday giant Tui has more than halved its losses for the past six months as it hailed a strong recovery in customer demand for the summer.

The company reported an earnings loss of 614.5 million euros (£525 million) for the half-year to March 31, following a 1.3 billion euros (£1.11 billion) loss for the same period a year earlier.

It told shareholders it could return to profit by the end of the year as a result.

Tui said it expects a “strong” summer and has already achieved 85% of the booking levels seen in summer 2019, before it felt the heavy impact of the pandemic.

It said the latest quarter was “significantly improved” as the easing of pandemic restrictions helped boost bookings.

The travel group said its UK operation “continues to lead the way” for summer bookings, which currently show an 11% increase against the levels seen in summer 2019.

After two years of crisis, we expect Tui to become profitable again in the current financial year with a significantly positive underlying EBIT (earnings before interest and tax)

Fritz Joussen, Tui CEO

Tui said it expects overall bookings for the summer to “almost reach” levels from 2019.

It has been buoyed by holidaymakers booking “more at short notice” and also spending more money on each trip, the firm said.

Meanwhile, revenues for the past half-year increased more than five-fold to 4.5 billion euros (£3.8 billion) against the same period a year earlier, when the firm was still struggling with Covid-19 restrictions.

Tui chief executive officer Fritz Joussen said: “The high demand for travel and the very good business performance confirm our forecasts.

“2022 will be a good financial year. Capacity almost reaches pre-corona level of 2019.

“After two years of crisis, we expect Tui to become profitable again in the current financial year with a significantly positive underlying EBIT (earnings before interest and tax).

“This is the basis for new growth.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in