by LONDON (Reuters) – Holiday group TUI (TUIGn.DE) said on Tuesday it was seeing encouraging booking trends for the summer and next winter as customers return after a pandemic break.
Some analysts have feared recessionary pressures could dampen holiday demand, but results from airlines including Ryanair (RYA.I), Wizz Air (WIZZ.L) and easyJet (EZJ.L) have shown consumers are on their way Prepare vacation.
TUI, one of the world’s largest tour operators, announced that the number of guests in the first quarter was 3.3 million compared to 2.3 million in financial year 2022, while the upcoming bookings for the winter and summer season 2023 were 8.7 million reached.
London-listed (TUIGn.DE) shares rose a whopping 4.4% to 178.8p, ending a three-day losing streak.
Revenue for the first quarter rose to 3.8 billion euros ($4 billion) from 2.4 billion euros a year earlier, while consolidated loss before interest and taxes halved to 158.7 million euros from 274 million a year earlier.
“Our strategy is clear: quality, cost discipline and market share. New products, additional customers and thus more market share as well as above-average growth are the basis for future increases in sales and earnings,” said TUI CEO Sebastian Ebel.
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European consumers are grappling with the highest inflation in a generation, but holiday demand has so far proved resilient.
Price increases in the tourism sector remain lower than inflationary cost increases, allowing continued optimism, Ebel said, adding that the earthquake in Turkey has led to a slight slowdown in bookings to that country.
Separately, TUI shareholders are expected to vote later on Tuesday on a capital increase plan to repay Germany’s economic stabilization fund, which is set to take place by the end of the year. The fund helped save TUI during the pandemic.
“We are doing the actual capital increase at the right time in the right capital market window,” said Chief Financial Officer Mathias Kiep.
($1 = 0.9317 euros)
Additional reporting by Miranda Murray and Ilona Wissenbach; Edited by Shounak Dasgupta and Mark Potter
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