Tui could have operated more capacity this summer and next if scheduled aircraft deliveries from Boeing had not been delayed, according to group chief executive Sebastian Ebel.
But the Tui Group’s new direct connections with easyJet, Ryanair and other carriers saw it increase sales of dynamic packages.
Tui was scheduled to take delivery of seven new Boeing 737 MAX aircraft in time for this summer and 24 in the next financial year, but Boeing deliveries have been severely hit after the loss of a cabin-door plug from a 737 MAX in mid-flight in January.
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Reporting results for the three months to June yesterday, Ebel said: “We had to lease aircraft because we didn’t get the Boeing MAX aircraft.”
He told analysts: “The room is there for us to grow [in the UK], but the limitations [on aircraft] are the same as for others. It’s not possible for us to increase our fleet.”
As a result, Ebel said: “Further growth is on the dynamic [package] level.”
Boeing deliveries are not expected to return to a normal schedule for another two years at least. Ebel said growth in the Tui fleet “will be possible hopefully from 2026 when we are back to normal deliveries from Boeing”.
However, he said disruption to Tui’s flying programme had been minimal as the group had leased aircraft, although this had been costly.
Ebel explained: “We diminished disruptions which could have occurred because of not getting deliveries from Boeing. We expect the deliveries in 2026 and we will manage the situation [until then].”
Tui reported record revenue of €5.8 billion for its third quarter to June, up 9% on last year, with group bookings for this summer up 6% year on year and the average sales price up 3%.
Departing passenger numbers in the quarter were up 4% on last year at 5.8 million, and dynamic passenger numbers rose 8% to 800,000.
The group reported UK summer bookings up 5% on 2023 and bookings in Germany up 10%, but it gave no detail on average sales prices in the markets.
Tui also provided limited information on bookings for the coming winter saying it was too soon to provide details, although the UK winter programme is already 32% booked.
Ebel described late bookings for August and September as “very strong”, saying: “Short-term bookings are good, prices are good.
“There was a slight slowdown for the European Championship and Olympic Games [in June and July],” he said. “But the market is very strong, very late. Prices are good for short-term business.”
Ebel added: “We opened a direct link for Ryanair sales in Central Europe this week. This is very profitable lates business. We are making big progress on getting dynamic bookings.”
The group reported an ‘underlying’ operating profit in double digit figures for an eighth consecutive quarter.
Its operating profit for the three months to June was €226 million, and operating profit for nine months €31 million, with results for the most-profitable quarter to come.
Tui recorded a pre-tax quarterly profit of €139 million, but a loss of €264 million over the nine months to June.