TUI Group says it almost broke even in the third quarter of 2022, despite additional costs of €75 million for air traffic disruption, which mainly occurred in the UK.
Average prices are around a fifth above pre-COVID levels and the company’s Cruises and TUI Musement divisions have posted positive quarterly results for the first time since the start of the pandemic.
Excluding the additional cost for air traffic disruption, adjusted operating profit stood at €48 million for the three months ended June 30, its first positive result since COVID.
Turnover improved almost sevenfold, at €4.43 billion, compared to the previous year’s turnover of €650 million.
Summer 2022
Current bookings are at 90% of summer 2022. For the months of July and August, this figure is at 93% of the pre-crisis level.
Holidaymakers continue to book more at short notice and at the same time spend more money on their trip, with average prices up 18%.
“Holidaymakers are booking more package holidays and higher value services such as room upgrades and longer stays,” TUI said.
Flight cancellations
TUI said it incurred €75m in additional costs caused by flight ‘irregularities’ – particularly in British air traffic. Despite this, TUI itself brought 96% of all guests to their holiday destinations on time or with delays of less than three hours in May and June.
“The roughly 200 flight cancellations in this period mainly relate to departures from Manchester airport and represent less than one per cent of the entire summer programme,” it added.
Cruise
TUI achieved a positive operating result earlier than expected, after previously not expecting a recovery until the second half of the calendar year. Load factors were between 57-70% and ‘the trend towards later and shorter-term bookings continues here as well’.
CEO/CFO comments
CFO and designated CEO Sebastian Ebel said the results show ‘the robustness of our integrated business model, the strength of the TUI brand and the continued high demand for holidays’.
Outgoing CEO Fritz Joussen said: “We are experiencing a strong travel summer. TUI is secured and economically and operationally back on track when I hand over the chairmanship to Sebastian Ebel on 30 September.”
