Tui Group losses narrow thanks to record second quarter

  • Tui’s pre-tax losses declined by 37.9% to €403.1m in the six months to March
  • Over the latter three months of the period, Tui’s revenue hit a record €3.6bn

Tui Group has slashed its first-half losses and upheld its annual forecast on the back of its best ever second-quarter result.

Europe’s largest travel company revealed pre-tax losses declined by 37.9 per cent to €403.1million (£346.6million) in the six months ending March.

Revenue hit a record €3.6billion over the latter three months, rising 16 per cent on the previous year, thanks to bumper performances by its cruises and hotels businesses.

Improved performance: Tui Group revealed pre-tax losses declined by 37.9 per cent to €403.1million (£346.6million) in the six months ending March

The former segment benefited from higher occupancy levels, with its Hapag-Lloyd business achieving 100 per cent capacity, and average daily rates jumping by about a fifth to €221.

Simultaneously, its accommodation division was boosted by expanding customer numbers at Riu hotels and travel to destinations like Mexico, the Canaries, and Cape Verde.

Tui’s airline business also enjoyed strong demand, seeing half-year turnover jump by about €800million to €6.7billion, with Mexico, Thailand, and the Dominican Republic proving to be popular long-haul hotspots.

The Hanover-based firm noted it had sold 60 per cent of its summer programme, five percentage points higher than last year.

In the UK, summer bookings are three per cent up and almost two-thirds of the season has been sold.

Tui acknowledged that trading could be affected by ‘the current macroeconomic as well as geopolitical uncertainties,’ particularly in relation to the recent Middle East crisis.

Flights to countries like Israel and Egypt have reduced significantly since the Gaza conflict erupted last October.

Tui continues to expect its revenue this year will rise by a minimum 10 per cent, while its underlying earnings will grow by at least a quarter.

Adam Vettese, analyst at eToro, said Tui’s results were an ‘encouraging sign going into the peak summer season’.

He added: ‘Despite some lingering economic uncertainty, it does not seem demand will be lacking. Inflation pressures have begun to ease as consumers have more disposable income for travel.’

Tui’s results come as it prepares to delist from the London Stock Exchange in favour of Germany, which many shareholders have argued would simplify its structure and boost liquidity.

Many companies in recent years have either exited the London markets or switched their primary listing to another bourse, with reasons given including the potential for higher valuations abroad.

Tui shares were only 0.2 down at 599.5p on late Wednesday afternoon and remain far below their pre-pandemic levels.