TUI halves first-half losses after record Q2

15th May 2024 07:29

(Sharecast News) - A record performance in the second quarter helped travel firm TUI grow first-half revenues by 15% and more than halve underlying losses, as it reconfirmed its guidance for the full year.

The company said that revenues increased to €7.95bn in the six months to 31 March, up from €6.90bn the year before, with strong growth and improved pricing across the board. The cruises division in particular saw first-half growth of 49% to €384m.

Underlying EBIT totalled -€183m, compared with a loss of €395m in the first half last year, though a profit was recorded for the second quarter.

Revenues in the second quarter alone totalled a record €3.6bn, with underlying EBIT for the quarter rebounding to €53.6m from a loss of €188.7m the year before.

Some 2.8m customers travelled with TUI during the second quarter, up 14% on last year, while average load factors were 93% in line with last year.

Looking ahead, summer bookings in Markets & Airlines "continue to be promising", the company said with 60% of the season now sold. Bookings so far are up 5% on last year, while pricing has improved by 4%.

Holiday Experiences trading remains in line with expectations, while both the Hotels & Resorts and Cruises divisions continue to benefit from strong demand.

TUI has maintained its guidance to increase revenues by "at least 10%" over the full year, and increase underlying EBIT by "at least 25%".