The TUI Group has restored it’s financial situation back to profitability, but their airlines division still continues to lose money.
Losses across the board have been reduced significantly, as observed through the recently released Q124 report.
Without further ado, let’s get into it…
TUI Group Restores Profitability…
TUI Group has gone from a 153m EUR loss to a profit of six million euros for the first time in a while.
This comes off the back of revenues rising by 15% to 4.3bn EUR, with bookings very strong for the Group ahead of the busy Summer 2024 season.
3.5m guests travelled with the company in the period, which is an increase of 6% compared to Q123.
TUI Group CEO Sebastian Ebel said the following on the results:
“We are on track, we are gaining customers and we are growing. We are accelerating our transformation quarter by quarter.”
“We have goals that we are consistently implementing. In a persistently challenging environment, people’s high willingness to travel ensures strong economic development in all areas of the Group.”
“This reiterates our expectations for the year as a whole: We want to increase our revenue by at least 10 per cent and our operating result by at least 25 per cent.”
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Airlines Still Losing Money, But Losses Halved…
Whilst the Markets & Airlines segment is still losing money, the TUI Group have managed to halve their losses.
In their report, they said the following on this:
“Underlying earnings also improved in the Markets & Airlines segment. At -95.7 million euros, the seasonal loss was halved compared to the previous year (-194.6 million euros). “
“This development was driven by higher average prices, an improved operating performance and a return to normal hedging lines.”
Overall, TUI Group are performing very well, and all eyes will be on whether they will be able to achieve their targets over the course of 2024.
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