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TUI Reiterates FY Underlying EBITA Outlook - Quick Facts

TUI Group (TUIFF.PK) said that summer 2019 season is closing out in line with expectations and it therefore reiterated fiscal year 2019 underlying EBITA guidance of approximately up to minus 26% compared with underlying EBITA rebased in fiscal year 2018 of 1.177 billion euros.

The company noted that its Holiday Experiences business continues to deliver strong results. Meanwhile, Markets & Airlines business faces a number of ongoing external challenges such as the grounding of the 737 MAX aircraft, airline overcapacities and continued Brexit uncertainty.

Chief Executive of TUI Group, Friedrich Joussen, said, "On Monday 23 September 2019, our competitor Thomas Cook UK Plc and associated UK entities entered into compulsory liquidation. TUI is preparing measures to support. Where TUI customers are booked on Thomas Cook Airlines flights and these are no longer operated, replacement flights will be offered."

TUI Group said it is currently assessing the short term impact of Thomas Cook's insolvency under the current circumstances, on the final week of fiscal year 2019 financial result.

The company anticipates a smaller level of aircraft replacement costs to be incurred, compared to Summer 2019. Resumption of the 737 MAX remains subject to the clearance decision of the civil aviation authorities.

Winter 2019/20 programme is at an early stage, with around one third of the programme sold, broadly in line with prior year. The weaker demand environment remains evident and it expects bookings down in line with its capacity reduction of 2%, with average selling price up 4% on prior year.

In Hotels & Resorts, the company expects demand for Spain normalising with both rates and occupancies coming off record highs in recent years, offset by better results in its Turkish hotels. By the end of this financial year, it will have successfully opened about 70 new hotels since merger, well ahead of its 60 target set at the time of the merger.

TUI Group said it will issue its annual report on 12 December 2019.

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