Tui reaffirms full-year earnings guidance

24th Sep 2024 08:42

(Sharecast News) - Travel firm TUI reaffirmed its full-year earnings guidance on Tuesday, hailing a "promising" start to Winter 2024/25 as consumers continue to prioritise spending on leisure experiences.

Pointing to positive booking momentum and a strong close to Summer 2024, the company said it was "well positioned" to reaffirm its FY24 guidance for underlying earnings before interest and tax to grow at least 25% year-on-year.

In an update for the year to the end of September, the German company - which recently abandoned its London listing in favour of a Frankfurt listing - said bookings in Markets and Airline rose 7%. Average selling prices were up 5%, ahead across all its source markets, boosted by stronger demand "for dynamically packaged product".

Meanwhile, Holiday Experiences saw a "solid" start to H1 FY25, "supported by asset-right growth strategy" including the company's fleet expansion in Tui Cruises.

As far as current trading in Markets and Airline is concerned, Tui said it had maintained the positive late booking momentum and improved ASP for Summer 2024 since its third-quarter update on 14 August. As a result, bookings remain 6% ahead as it continues to grow the customer base, with 1.4m additional bookings taken since the August update, to 14.7m for the season.