Tui Group reports ‘good’ quarter ‘despite economic challenges in Europe’

Tui Group says it remains on track for a profitable full financial year despite “challenging” economic conditions.

 

The tourism giant reported a “strong” second quarter – from January to March – with group revenue up by 1.5% to €3.71 billion.

 

Taking into account the effect of a late Easter – which took €32 million off the bottom line – adjusted Q2 group earnings improved by €14 million to a seasonal loss of €207 million.

 

More: Tui denies losing UK market share despite holding capacity flat

 

The Q2 results also noted a “good” lates markets for winter 2024-25, with the season seeing a 2% increase in bookings and average prices up 4% year-on-year.

 

The winter season saw 5.5 million bookings, up 2%, with the Canary Islands, Egypt, mainland Spain and the Cape Verde Islands remaining the most popular short-haul and medium-haul destinations.

 

Mexico, the Dominican Republic, Thailand and the United Arab Emirates were the most important winter destinations.

 

Guidance for the current 2025 financial year was reaffirmed, with revenue expected to increase 5-10% and underlying earnings up by 7-10%.

 

Sebastian Ebel, Tui Group chief executive, said: “We will continue to grow profitably in this financial year.

 

“Given the economic conditions, 2025 will be challenging. Europe needs new momentum.

 

“We must return to an overall economy that is growing. More investment, more freedom – less regulation and less bureaucracy. This will strengthen the economy and consumer behaviour.”

 

He added: “In times of economic and political challenges, we are focusing on securing margins, driving forward the transformation of the Markets + Airline business (tour operators, retail and Tui Airline) and consistently reducing costs.

 

“Travel agencies remain an important partner and distribution channel.

 

“We are expanding our tour operator business and travel agency sales, as well as our own app, in particular with our dynamically compiled product offerings.

 

“More individuality, flexible options and the proven security of package holidays are the strengths of dynamically sourced travel offerings.”

 

The Northern region of its Markets + Airline business (tour operators, retail and Tui Airline) - which comprises the UK, Ireland and the Nordic countries – reported underlying earnings which widened to a seasonal loss of €182 million (previous year -€165 million).

 

Julie Palmer, partner at Begbies Traynor, said: “Tui has managed to land another strong set of results, reflecting a business that is delivering further operational improvements as it benefits from strong market fundamentals.

 

“The most positive news comes in the balance of success across sectors, signalling the foundations of longer-term stability.

 

“Markets & Airline wasn’t too heavily impacted by Easter shifting into the next quarter, Tui’s experiences and activities division saw a sharp rise in earnings, and Cruises achieved a record Q2 as it was buoyed by the addition of two new ships.

 

“At a time of significant economic turbulence, Tui has proven it can continue to consistently deliver decent results.

 

“With summer 2025 just around the corner, a small dip in bookings might be a slight concern, but full year guidance remains unchanged which suggests the global tourism giant remains confident in its ability to pull this back in the coming months.”