Tui delivers record sales amid booming demand for holidays
The group narrowed half-year pre-tax losses to 403.1 million euro (£346.6 million) after revenues jumped 15%.
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Holiday giant Tui has revealed better than expected results after notching up record revenues as it said travelling remains “very popular” despite rising prices for trips abroad.
The group – which is switching its listing from London to Frankfurt – reported pre-tax losses of 403.1 million euro (£346.6 million) for the six months to March 31, against 648.8 million euro (£557.9 million) a year earlier.
Holiday firms traditionally post losses over the quieter winter months.
Revenues jumped 15.2% to eight billion euro (£6.9 billion) in the first half.
Its group loss stood at 330.5 million euro (£284.2 million), against losses of 558 million euro (£479.8 million) a year earlier.
Tui said it was seeing “high demand” for package holidays in particular.
But the firm said its average prices were around 4% higher for the summer season than a year ago.
The group’s summer programme is 60% sold, with 9 million bookings for the upcoming peak season, up 5% year-on-year.
In the UK, summer bookings so far are 3% higher, with 65% of the season sold.
Sebastian Ebel, Tui Group chief executive: “Travelling is very popular with people.
“We see trends that will further strengthen this in the future: experiences are becoming more important than possessions, and the middle classes are growing in many parts of the world.”
Tui added it was “aware of the ongoing challenges in the geopolitical environment” but is sticking to full-year guidance, with aims to increase revenue by at least 10% and underlying operating earnings by at least 25%.
The firm said milder winter weather “motivated many last-minute travellers to make winter bookings” in its second quarter.
It said 5.1 million people booked trips over the winter season, with 700,000 added since its last update in February.
Prices were 3% higher on average for winter holidays, it said.
Tui added that medium and short-haul destinations are driving bookings for the summer.
“Greece, Turkey and the Balearic Islands are once again proving to be the most popular destinations for summer holidays,” it said.
Tui’s time on the London market will come to an end officially on June 24, having recently switched to Germany, where it is also headquartered.
But the group has stressed previously that the move will have no impact on its companies and activities in the UK.
It recently said the UK “is and will remain a core market for the group”.