The European holiday giant on Wednesday (14 August) recorded an eighth consecutive quarter of double-digit growth in underlying group earnings (ebit) amid what chief executive Sebastian Ebel described as "a market environment that remains challenging".
During the three months to 30 June, its third quarter, Tui’s underlying group ebit increased by €62 million (£53 million) – more than a third (37%) – from €169 million (£145 million) to €232 million (£199 million).
This came off the back of a nearly 10% increase in revenue to €5.8 billion (£5 billion), which was driven by a 5.5% increase in Q3 passenger numbers from 5.5 million to 5.8 million.
As a result, Tui expects revenue for its full-year to 30 September 2024 to increase by at least 10% year-on-year and underlying ebit to go up by at least a quarter year-on-year. "We are growing profitably and are delivering what we have announced," Ebel continued.
Ebel said Tui’s efforts to expand its product portfolio in destinations such as Asia and the Americas was growing its customer base, while efforts to expand its global market presence was making it less dependent on European holiday seasons.
In its northern European region, which covers the UK, Ireland and the Nordics, underlying ebit rebounded from a €1.1 million (£940,000) loss during Q3 last year to €14.2 million (£12.2 million). "Prices remain robust," said Tui, with average prices up by 3% year-on-year.
Bookings across the group during the pre- and early-summer period increased by 6% year-on-year, with 88% of summer capacity already sold. In the UK, summer bookings are up 5% year-on-year, while its 2024/25 winter programme is currently 32% sold – equitable with sales during the same period last year.
"The start of the season [is] looking promising," said Tui. "As usual, the UK market has been on sale longer than the other markets. Bookings are at the same high level as last year."
Overnights are running 2% ahead of last year, while hotel occupancy currently stands at 80% – up 1% year-on-year. The average day rate, meanwhile, increased by 7% year-on-year to €85 (£73).
Tui said higher occupancy and rates across its cruises segment pointed towards "strong demand" for cruises with occupancy up three percentage points year-on-year to 98% and average fares increasing by 7% to €235 (£201).
Ebel also stressed that Tui’s broader financial health and resilience has improved over the past three months thanks to a reduction in net debt to €2.1 billion (£1.8 billion) and refinancing worth nearly €500 million (£428 million), which it expects to reduce annual interest costs by around €18 million (£15.4 million).
