Kuoni sees profits rise, despite cancellations

Kuoni sees profits rise, despite cancellations

Tour operator Kuoni has seen profits rise by nearly 300 per cent over the past year, with a recovery in the global economy and a cost cutting drive both taking effect.

The Switzerland-based organisation recorded earnings before tax and interest of £39.6 million in 2010, compared to £10.2 million in the previous year.

This was on the back of a 2.3 per cent rise in turnover to £2.7 billion for financial 2010, with all regional divisions contributing to the group’s recovery from the recession.

Kuoni also revealed that overall bookings so far for 2011 were flat - based on local currencies - compared to 2010.

In contrast, Kuoni said UK business was down by three per cent year-on-year.

Bookings were down by seven per cent when converted to Swiss francs due to changes in exchange rates.

Political Unrest

In a statement, chief executive, Peter Rothwell, said the company had been hit by the political unrest in north Africa, which caused the temporary suspension of holidays to Egypt and Tunisia in the first two months of the year.

“Cancellations were only partially offset by rebookings, so booking volumes are down,” added Rothwell.

“However, our flexible business model allows us to adjust our offerings to other holiday regions.

“Due to the slight weakening of economic growth in the main markets, the uncertain geopolitical situation in Arabic countries and the potential consequences of the severe earthquake in Japan, it is difficult to estimate what will happen in 2011.”