Tui Group has reported a widening of its underlying loss for Q1 as the market “remains challenging”.
Underlying Ebita (earnings before interest, taxes and amortisation) for the quarter was €-83.6 million, compared with €-36.7 million the previous year. Tui’s northern region in particular – which includes the UK market – reported underlying Ebita of €-74.3 million, compared with -€37.3 million in 2018.
Group turnover grew by 4.4% to €3.70 billion, while customer volumes across all markets climbed by 1.2% to 3.7 million.
Earnings guidance for the full year 2019 was adjusted on February 6.
However Tui insisted current trading for summer 2019 was broadly in line with prior year and average selling prices were flat year-on-year.
The company said in a statement: “The market environment for all tour operators remains challenging, as they are simultaneously impacted by several factors.
“The impact of the unusually long and hot summer 2018, resulting in an increase in the number of late bookings and lower margins in the Markets & Airlines segment.
“A shift in demand from the western to the eastern Mediterranean, creating overcapacity in other destinations such as the Canary Islands and going hand in hand with lower margins for the Markets & Airlines segment.
“Moreover, sales of higher-margin products to British customers are adversely affected by the weakness of the British pound.”