Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

TUI delivers record Q1 and holds on to guidance

(Sharecast News) - Travel agency company TUI has registered a positive quarterly underlying profit for the first time after a record performance in the first quarter, as it reiterated its guidance for the full year. The company booked underlying earnings before interest and tax of €6m for the three months to 31 December, moving into the black for the first time since the merger of TUI AG and TUI Travel PLC in 2014. For the first quarter a year before, the group registered an underlying EBIT loss of €153m.

Group revenues were up 15% year-on-year at €4.3bn, driven by higher demand at improved rates and prices, the company said.

Customer numbers totalled 3.5m during the quarter, up 6% on the prior year, with the average load factor one percentage point higher at 86%.

Net debt dropped to €4.0bn from €5.3bn a year earlier, helped by proceeds from the capital increase in April 2023 as well as positive cash flow from operations and lower net investments.

Looking ahead, TUI said that bookings for the summer look "promising" with 32% of the programme already sold - in line with last year.

As a result, the company said it still expects full-year revenues for the 12 months to 31 October to rise by 10%, with underlying EBIT increasing by "at least" 25%.

"Our guidance for FY 2024 is provided within the framework of the current macroeconomic as well as geopolitical uncertainties especially in the Middle East. It is based on the strong performance in Q1 and the current positive booking momentum across both seasons, as well as a return to a normal hedging policy," TUI said.

Share this article

Related Sharecast Articles

Checkit secures three contract wins, launches new product
(Sharecast News) - Software solutions firm Checkit said on Monday that it has secured new contract wins from two existing customers worth a minimum of £417,000 in total lifetime revenues over their three-year terms.
CyanConnode gets big order from IntelliSmart
(Sharecast News) - Narrowband radiofrequency and smart mesh network technology specialist CyanConnode announced receiving an order for 265,331 Omnimesh modules from Madhyanchal One Infrastructure on Monday, a subsidiary of IntelliSmart Infrastructure.
Getech secures three separate contract wins
(Sharecast News) - Subsurface resources locator Getech said on Monday that it had secured three separate contract wins related to the exploration of natural hydrogen.
Getech secures three separate contract wins
(Sharecast News) - Subsurface resources locator Getech said on Monday that it had secured three separate contract wins related to the exploration of natural hydrogen.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.