In its Q3 results the company reported a second year of profitable growth, with underlying nine month (October 1, 2017, to June 30, 2018) Ebita (earnings before interest taxes and amortization) up €57.7 million €65 million at constant currency.
Including the currency effect underlying Ebita climbed by €27.5 million to €34.8 million.
In Q3, turnover rose by 5% to €5.016 billion. On a constant currency basis and excluding the impact from the earlier timing of Easter, underlying Ebita totalled €227 million, up 2.4% year-on-year.
Including foreign exchange translation and the Easter impact, it declined by 12.7% to €193.4 million.
Tui said airline disruption cost around €13 million in Q3, primarily as a result of air traffic control strikes in France. “Action is being taken to address our operational resilience in light of this,” the company said.
Tui Group chief executive Fritz Joussen said: “A good third quarter, very good nine month results.
“Our sector earns its profits in the fourth quarter. We have delivered a profitable operating result already after nine months for the second year in a row.
“We have considerably reduced our seasonality and thus our susceptibility to external challenges through the group’s transformation focussing on hotels and cruises.
“Tui is in good health, we are flexible, deliver a strong operational performance and invest in our growth segments while maintaining our cost discipline.
“Early bookings and sustained growth at hotels and cruises limit the impact of the prolonged warm weather across Northern Europe.”
Trading performance for summer 2018 (as at July 29, 2018) was “good”, Tui said.
Spain remained Tui’s top destination while Turkey had caught up “strongly” and continues to record strong growth in bookings, along with North Africa and Greece.
Destinations such as Cyprus, Croatia or Bulgaria also saw good growth in bookings.
The group is reiterating full-year guidance of underlying Ebita growth of at leat 10%.
