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TUI Group says summer trading in line with forecasts

Tourists have been opting for western Mediterranean destinations such as Spain and Portugal
Tourists have been opting for western Mediterranean destinations such as Spain and Portugal

TUI Group, Europe's largest tour operator, said summer trading was in line with expectations.

Demand for Spain, Greece and the Caribbean has helped to offset subdued bookings for Turkey and North Africa. 

Tourists have over the last year been avoiding Turkey, as well as Egypt and Tunisia, over security concerns, instead opting for western Mediterranean destinations such as Spain and Portugal. 

For the summer, revenue is 8% ahead of last year, while customer numbers are up 4%, TUI said. 

This comes after the group reported a wider second-quarter loss, hit by the late timing of Easter this year.

But it said today it was on track to meet its full-year targets. 

"Guidance remains unchanged despite a challenging environment," chief executive Fritz Joussen said in a statement. 

The group reported a second-quarter underlying EBITA loss of €177.7m at constant currencies, against a loss of €126m the same time last year. 

Adjusted for the late timing of Easter this year, the loss for the first six months of the financial year improved 6.3% to €193.3m, TUI said. 

It also confirmed a target to increase underlying earnings before interest, tax and amortisation (EBITA) by at least 10% this year.