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TUI hopeful for summer despite higher prices after strong Q2 Article originally published by Reuters . Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Europe's largest tour operator TUI on Wednesday said it sees good demand for the upcoming summer season despite higher prices after reporting stronger-than-forecast results in the typically weak winter period.
This article is more than 6 months old
It was correct at the time of publishing. Our views and any references to tax, investment, and pension rules may have changed since then.
"Travelling is very popular with people. We see trends that will further strengthen this in the future," CEO Sebastian Ebel said in a statement.
Travel firms are hopeful that 2024's summer season will surpass pre-pandemic levels, despite economic uncertainty, delays in plane deliveries from manufacturers and rising jet fuel prices.
The German group, which has recently switched its listing from London to Frankfurt, said 60% of the summer programme has been sold so far, in line with the previous year's level, while prices added 4% on average.
TUI narrowed its operating loss in the January-March period to 189 million euros ($204.52 million), versus LSEG's consensus of a loss of 246 million euros.
Milder winter weather motivated some travellers to make last-minute bookings in the second quarter, TUI said.
Revenue rose by 16%, hitting a record 3.6 billion euros in the quarter.
Hanover-based TUI, which operates holidays, hotels, cruises and an airline, also confirmed its 2024 guidance of 10% revenue growth and an increase in operating profit of 25%.
This article was from Reuters and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
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