Tui Group today reported “positive trading momentum” for this winter and summer 2025 as Europe’s largest travel group forecast growth for the year.
The number of holidaymakers travelling with the company rose by 6% year-on-year to reach 3.7 million in the October to December quarter, resulting in a 13% rise in revenue to €4.9 billion.
A net loss of €30.4m represented a 63.6% improvement on the first quarter of last year, when a loss of €83.5m was posted.
Underlying earnings before interest and taxes for the group’s first quarter soared to €50.9 million from €6 million in the same period a year earlier.
The number of holidaymakers taking dynamically packaged holidays rose by 18% to 700,000.
Tui predicted “major growth opportunities” in this area in the future.
“Due to seasonal factors, the first two quarters of the financial year – October to March – are usually negative for companies in the industry in terms of earnings,” the company noted. “Nevertheless, the group was able to improve on last year’s good result. Revenue climbed by 13% to €4.9 billion – previous year €4.3 billion.”
However, underlying seasonal losses for the group’s northern region covering the UK, Ireland and the Nordic countries increased from €50.4 million to €88.5 million.
Yet the group said the positive overall booking momentum for winter 2024-25 and summer 2025 continues, with current bookings up 2% compared to last year.
“In particular, the positive booking momentum in recent weeks shows that consumers continue to prioritise their vacation,” the company added.
Average prices for this winter are currently 4% above last year’s levels with bookings driven in particular by short and medium-haul destinations.
The Canary Islands, Egypt and the Cape Verde Islands continue to be popular winter sun destinations.
Average prices for summer are also 4% higher than in the prior year with the most popular destinations being Spain, Greece and Turkey.
A strong performance from cruises was driven by improved demand and higher rates coupled with the expansion of the Tui Cruises fleet. Underlying earnings rose by 40% to €48.2 million from €34.5 million a year earlier as average daily rates increased by 4% to €213. Available passenger cruise days were up 10% year-on-year to 2.6 million.
Tui projected a 5%-10% rise in annual group revenues for the full financial year with an increase in underlying earnings of 7%-10% year-on-year, in particular due to expectations for summer 2025 including an “Easter shift effect” of around €30 million into the third quarter.
Chief executive Sebastian Ebel said: “The first quarter shows that we are on track for further growth in the full year.
“People prioritise their holidays even in times of change and economic risks. Our hotel and cruise businesses are growing continuously and are highly profitable.
“With the initiated transformation, we are strengthening the tour operator business in the core European markets. To become less dependent on Europe, we are focusing on new growth markets in Southeast Europe, Asia and Latin America.”
He added: “Tui is strategically well positioned. Thanks to our integrated business model, we create synergies between the two business areas Markets + Airline, with our tour operators and flight business, and Holiday Experiences, with our own hotels, cruises and Tui Musement.
“The roadmap is clear – we are accelerating our transformation and aiming for global growth. We set the course for that in the last financial year and will continue to deliver consistently in 2025.
“The first quarter shows our strategy is paying off, operationally we are delivering.
“People prioritise their holidays even in times of change, and even in a challenging economic environment in Europe for almost all sectors. For 10 quarters in a row Tui has successfully aligned trends, strategy and operational performance.”
Group chief financial officer Mathias Kiep said: “The promising performance in the first financial quarter of 2025, and thus the tenth consecutive quarter of earnings growth, will help us achieve our ambitious growth targets for the full year: we expect underlying EBIT to grow by 7%-10%.
“We have also reached another milestone in our financial profile: Fitch rating agency has given Tui a credit rating of BB with a stable outlook. This marks our return to pre-pandemic levels.”
- Julie Palmer, partner at insolvency experts Begbies Traynor, commenting on the results, said: “Tui’s ongoing success in Q1 is further proof that the travel industry is largely immune from wider economic turbulence and weakened consumer confidence.
“It is encouraging to see that cash-conscious customers are still willing to shell out for TUI’s budget-friendly holidays, even as the operator nudges up prices.
“Ongoing geopolitical conflicts and the onset of tariffs from the Trump administration add layers of uncertainty over future costs, yet Tui’s prudent policy of hedging the majority of its fuel requirements and currency exposure should allow it to hold its course through these headwinds.
“Recent lawsuits from disgruntled customers are a stark reminder that upholding a strong reputation is paramount amid a competitive market for budget holiday operators. As it cruises into 2025, Tui must demonstrate its commitment to maintaining the high standards, and good value, that customers expect.”