Europe's largest tour operator TUI posts strong Q3 due to summer bookings (updated)

FTI Consulting

14/08/2024 07:24

(Updates with context, background)
    By Andrey Sychev and Joanna Plucinska
       Aug 14 (Reuters) - Europe's largest tour operator TUI
 TUI1n.DE  on Wednesday beat third-quarter operating profit
expectations thanks to strong summer travel demand and a boost
from German rival FTI's bankruptcy. 
    Travel firms and airlines had hoped this summer season would
surpass pre-pandemic levels, despite economic uncertainty,
delays in plane deliveries and rising jet fuel prices.
    TUI posted 232 million euros ($254.92 million) in underlying
earnings before interest and tax (EBIT) for the April-June
quarter, up 37% from 169 million a year earlier. 
    That topped the 217 million expected by analysts polled by
LSEG.  
    TUI reconfirmed guidance for a 25% increase in operating
profit this year and revenue up 10%.
    While demand has remained strong, some airlines saw their
quarterly results knocked by rising costs associated with labour
disruption, maintenance and in some cases struggling business
bookings.
    But TUI's resilience lies in its travel business. Travel
agents have said that packaged holidays have made a comeback as
inflation drives up hotel, sightseeing and restaurant prices. 
    ($1 = 0.9101 euros)

 (Reporting by Andrey Sychev, Joanna Plucinska and Ilona
Wissenbach; editing by Rachel More and Jason Neely)
 ((andrey.sychev@thomsonreuters.com;))