TUI AG has reported a rise in passenger volumes and
pricing for its UK tour operations for summer 2004 but overall
earnings are down on last year, blamed on the strength of the
euro.
Earnings for Northern Europe – which comprises the UK and
Ireland, the Nordic countries and Britannia Airways – for the three
months ending September 30 were 194 million euros, down from 230
million euros on 2003.
In its report, the company said the strength of the euro against
the pound “adversely impacted” the operating costs of its UK tour
operators.
TUI UK tour operations carried 2% more passengers this summer at
1.75 million, with a strong period of late bookings in August.
However, earnings before interest, tax, depreciation and
amortisation for Northern Europe tour operations were 217 million
euros, down from 249 million euros for the same period last
year.
It said holidays to long-haul destinations had been boosted as a
result of the weak dollar. However, Spain had been hit by the high
cost for British holidaymakers, with bookings on a par for the
Balearics and mainland destinations but falling for the Canary
Islands.
Low-cost destinations such as Turkey and emerging resorts in
eastern Europe, in particular Bulgaria, had seen a growth, it
reported.
It has increased its level of directional selling, shifting 71%
of its own product during from July to September.
Britannia Airways UK also increased carryings by 5%, with a load
factor of more than 95%.
Winter 2004/05 bookings are also up on last year, it said.