TUI Reports Profitable First Quarter and Strong Booking Momentum
TUI, the London-listed German travel operator, has announced a swing to underlying EBIT profit for the first quarter of fiscal 2024, thanks to an increase in the number of customers. The company has also backed its full-year forecast.
For the quarter ended December 31, TUI reported underlying earnings before interest and taxes of 6 million euros, compared to an EBIT loss of EUR153 million in the previous year. This positive result exceeded expectations, as Deutsche Bank analyst Andre Juillard had predicted an underlying EBIT loss of around EUR76 million.
On a constant currency basis, TUI’s underlying EBIT was even stronger at EUR14 million, compared to a loss of EUR153 million. The company’s net loss also narrowed to EUR122.6 million, down from EUR256.1 million in the same period a year earlier.
In terms of revenue, TUI experienced significant growth, with earnings for the quarter reaching EUR4.30 billion, compared to EUR3.75 billion in the previous year.
TUI remains optimistic about its performance going forward. The company has reiterated its expectations of achieving underlying EBIT growth of at least 25% and a revenue increase of at least 10% for the year.
Furthermore, TUI has seen positive booking momentum extending into the current winter season and summer. Bookings for both seasons are up 8%, indicating strong demand for travel services.
The travel industry has faced many challenges due to the ongoing COVID-19 pandemic. However, TUI’s solid financial performance and positive booking figures offer a glimmer of hope for the sector’s recovery. With the expectation of continued growth and an increase in customer numbers, TUI’s future prospects are looking promising.
Analyst comment
Positive news: TUI Reports Profitable First Quarter and Strong Booking Momentum.
As an analyst, I predict that the market will respond positively to TUI’s strong financial performance and positive booking figures, leading to increased investor confidence and potential growth for the company in the future.
