TUI Group sees increased losses in first quarter as uncertainty bites

9th Feb 2016
TUI Group sees increased losses in first quarter as uncertainty bites

TUI Group has delivered a first quarter loss for financial 2015/16, though figures show an improvement versus financial year 2014/15.

On a constant currency basis, underlying EBITA improved by 7.2 per cent to a seasonal loss of €97.3 million euros, compared to losses last year of €104.8 million in the reporting period from October to December.

Including the impact of foreign exchange translation effects, losses rose by three per cent to €101.7 million.

Moreover, the result posted for the first quarter of 2014/15 had included a gain on disposal worth €16 million.

TUI Group turnover climbed by 5.4 per cent to €3.72 billion within the same period.

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Fritz Joussen, chief executive, TUI Group: “We have delivered a good start to the new financial year, despite the backdrop of geopolitical turbulence in some of our destinations.

“As an integrated tourism group, TUI is strategically well positioned to tackle the challenges in this turbulent market environment.

“Our global presence in the destinations, our existing capacity and our own hotel and cruise content enhance the resilience of our economic position.

“Customers benefit from our business model thanks to comprehensive advice provided during the booking process and personal support offered in the destinations.

“This service has again given us a competitive edge over pure online providers, in particular during more turbulent times.”

TUI has recorded a decline in demand for Turkey, with summer 2016 bookings to that destination currently down by around 40 per cent.

However, the integrated business model and own hotel content have enabled TUI to act quickly to respond to these changes and offer customers alternative destinations.

TUI’s own hotels in destinations outside Turkey such as Spain and in particular the Canaries are benefitting from this shift in demand.

“Based on current trading and due to the resilience of our integrated business model, we remain convinced that we will be able to deliver the announced underlying EBITA growth of at least ten per cent in the full financial year 2015/16,” said Joussen.

Upon the close of today’s annual general meeting, Fritz Joussen will become sole group chief executive, as agreed at the time of the merger between TUI AG and TUI Travel.

Peter Long, who has been join chief thus far, will stand for election as a supervisory board member at the meeting.

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