TUI confident for full year as summer bookings grow

Monday, 14 August 2017 00:02 - - {{hitsCtrl.values.hits}}

AFP: German travel group TUI confirmed a bright outlook for its full financial year Thursday as summer bookings lifted the mood following a net loss in the first half.

TUI, whose business year runs from October to September, reported a net profit of 47.7 million euros ($56 million) between April and June, a fall of some 45% compared with the same period last year. Meanwhile, operating, or underlying profit grew 37.2% to 221.6 million euros on an adjusted basis, on the back of revenues up 12.6% at almost 4.8 billion.

“These good developments show our successful transformation and focussing on hotels and cruises, we’ve become a much less seasonal business,” chief executive Fritz Joussen said in a statement.

TUI reported its first-ever operating profit over the first nine months alone, at slightly more than 7.0 million euros.

The group has been selling off activities as it concentrates on its core business, shedding specialist travel provider Travelopia in the third quarter and its remaining stake in shipping firm Hapag-Lloyd in July.

The group said its wide range of destinations had helped it weather falling demand for trips to regions struck by unrest, including Turkey and North Africa – with higher interest in Spain, Greece and Italy and long-haul options like the Caribbean helping balance out the effect.Looking at the summer, which was not in the reporting period, TUI said it had 4.0% more guests and bookings 8.0% higher in value compared with last year.

For the full year, the group confirmed its objectives of an increase in operating profit of at least 10%, with revenues growing at least 3.0%.