Travel group TUI has confirmed that its annual results are expected to improve substantially. The summer season was strong and bookings for this winter are increasing.
TUI recovers from Covid
The news confirmed that the post-pandemic travel boom continues. TUI shares jumped 6.5%, on course for their biggest rise since March. Reservations for summer 2023 totaled 13.7 million, an increase of 5% from the previous summer season, the company said in a statement. Sebastian Ebel, CEO of TUI said: “If it had not been for various events in recent months beyond our control, including the fires in Rhodes, we would have exceeded our expectations.”
Forward bookings increased 15% compared to winter 2022 and 2023, the company said, while summer bookings reached 96% of pre-pandemic levels.
The weather conditions were detrimental
Even though Europe faced extreme weather conditions that caused unprecedented disruption, the company said it was on track to confirm that its earnings before interest and taxes would rise significantly for the fourth quarter and year, with continued growth forecast for 2025 and 2026. Last week, TUI said it was monitoring adverse weather conditions in its main destinations. Earlier, the group predicted losses of up to 25 million euros due to forest fires on the Greek islands.
Air transport strikes have had an impact in the UK
Strikes and a technical glitch in Britain’s air traffic management systems have also disrupted travel this summer, heightening concerns that consumer appetite for airlines such as TUI and Ryanair could fade for Winter.
