However, Tui Group chief executive Sebastian Ebel warned that while Tui expected 2023 to be a "solid and good year", there were several external market factors that could hinder the group’s recovery from the pandemic.
Nearly 14 million people travelled with Tui over the summer, more than half of whom – 7.6 million – travelled during Tui’s peak summer period (three months to 30 September). Summer revenue doubled year-on-year from €3.37 billion to €7.61 billion while summer earnings before tax ram to £1.1 billion, excluding costs arising from flight disruption.
Full-year revenue (year to 30 September), meanwhile, came in at €16.5 billion, up from €4.73 billion, while underlying earnings before tax ended at €409 million, a recovery from a €2.1 billion deficit.
Looking ahead to 2022/23, Tui said the war in Ukraine, the ongoing impacts of the pandemic, inflation, high energy prices and exchange rate fluctuations would ensure the trading environment in travel "remains challenging", although Tui is planning to operate a winter schedule "roughly in line with pre-crisis levels".
This programme is 52% sold (2.7 million bookings), equivalent to 84% of its winter 2018/19 season. The UK remains Tui’s most advanced market, up 5% year-on-year, with average pricing up 23% on winter 2018/19. Tui said the short-term booking trend from the summer was continuing into the winter.
It expects "a strong increase in revenue" and "significant increase in underlying Ebit [earnings before tax]" next year after putting the "existential crisis" of Covid behind the business.
"We had a strong summer, a very good quarter and we achieved the announced target of significantly positive underlying Ebit," said Ebel. "Tourism remains a long-term and attractive growth sector. All fundamental data point to this, and the long-term megatrends from which our industry particularly benefits, remain intact.
"We also expect 2023 to be a solid and good year, but we are very aware of external market factors. With our strong brand, resilient business model, increased flexibility and dedicated teams, we are very well positioned to benefit from market opportunities in the current financial year and beyond."
’No state gifts’
Ebel said Tui’s operational focus was fixed on returning to "profitable growth", including stripping back the group’s reliance on, and access to, state aid. "The pandemic confronted the whole sector with the crisis of a century and without those government bailout packages Tui would hardly have survived," Ebel continued.
"We are grateful for that support. However, if you look at how much we actually drew down from those packages, you can see that we have come through the crisis in robust shape. Tui didn’t receive any gifts from the state. We pay interest on any drawdowns.
In the end, the engagement paid off well for the public budget and the taxpayer. By the end of our financial year alone, the German government has received around €300 million in interest from us."
