Holiday giant Tui has reported “encouraging booking momentum” as its first-quarter results revealed the group has cut its winter losses and boosted revenue.
It said in a statement: “The start into the new year has seen significant booking momentum with record booking days online in both the UK and Germany.”
Volumes overall in the last four weeks are now above pre-pandemic levels, at +5% for winter 2022-23 and +10% for summer 2023, with higher prices.
More: Jet2holidays overtakes Tui as UK’s largest operator
Tui winter prices 23% above pre-pandemic levels in UK [December 22]
Tui puts summer 2024 programme on sale [November 22]
Tui said these figures underline “the popularity of our product offering” and are “a testament to the importance of travel for our customers”.
Q1 group revenue, for final three months of 2022, was €3.8 billion, up €1.4 billion year on year, “reflecting the strength of demand and a return to a restriction-free travel environment achieving levels above pre-pandemic levels (Q1 2019: €3.7bn)”.
Its underlying EBIT (earnings before interest and taxes) showed a loss of €153 million, described as “a strong improvement year-on-year (Q1 2022: €-273.6 million).
A total of 3.3 million customers departed in the quarter, an increase of one million customers year on year, while the average load factor for the quarter was 85% (Q1 2022: 79%).
Speaking during a webcast on Tuesday, Sebastian Ebel, Tui chief executive, said he wanted Tui to regain its top spot in the UK, which has just been taken by Jet2.
“Jet2 has done very well filling the gap that Thomas Cook left behind,” he told the webcast.
“To be number one is not a target in itself but…it is clear that we want to be number one, with a clear target to improve profitability, to focus on wholesale packages and add dynamic packaging and component sales. It will bring us to a good situation to become number one again.
“The management is very aware of that…a draw is not the result we want. Winning is important. We are very positive about the outcome.”
In the results statement he said: “Our strategy is clear: quality, cost discipline and market share. New products, additional customers and as a result more market share and above average growth are the basis for future increases in revenue and earnings.
“Swift implementation of the strategy is having an effect, booking dynamics for summer 2023 are encouraging.
“Both strengthen our expectations: underlying earnings to increase significantly in full year 2023.
“On the basis of solid operational and economic development, the balance sheet is to be further strengthened: at the Annual General Meeting, the final step towards refinancing the state aid is to be initiated.”
In its Markets & Airlines segment, results were well ahead of last year, supported by higher prices and volumes.
For the winter 2022-23 season, four million bookings have been taken so far, with 85% of the programme sold – broadly in line with winter 2018-19 levels.
The average selling price is 29% higher than winter 2018-19, and up 8% year on year.
For summer 2023, there have been 4.7 million bookings so far, with 30% of the overall programme sold.
Summer bookings are up 20% year on year and at 89% of pre-pandemic levels.
Prices are 2% up on summer 2022 and 24% higher than pre-pandemic levels.
Its Hotels & Resorts segment reported a third consecutive quarter above 2019 levels and was up year-on-year.
The recovery in its Cruises segment also continued, with a third positive quarter since the start of the pandemic.
More: Jet2holidays overtakes Tui as UK’s largest operator
Tui winter prices 23% above pre-pandemic levels in UK [December 22]
Tui puts summer 2024 programme on sale [November 22]