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TUI Q1 Loss Widens, Says Summer Demand Strong

tuigroup feb09 lt

Tour operator TUI AG reported Tuesday a wider loss in its first quarter with sharply lower revenues due to widespread lockdowns and massive travel restrictions amid pandemic crisis. However, despite major uncertainties, customer demand for summer 2021 is strong. TUI shares were trading around 1 percent lower in German and London trading.

Fritz Joussen, CEO of TUI Group, said, "With strict cost discipline and the realignment of the Group, ..we succeeded in reducing the loss in the past quarter. As expected, customers will book their summer holidays much later this year than in normal years. However, demand remains strong, people want to travel - this is shown by the already good number of bookings for the summer."

For summer 2021, TUI has recorded a total of 2.8 million bookings, around 56 percent of bookings at the same time for summer 2019, with average prices 20 percent higher than for last year. Capacity for the 2021 summer program remains around 80 percent of the summer 2019 program.

According to the company, the uncertainties of the ongoing pandemic and ever-changing quarantine and travel requirements are having an impact on the timing of bookings, as expected.

For the first quarter, Group loss attributable to shareholders was 802.9 million euros, wider than prior year's loss of 128.6 million euros.

Earnings before interest and tax or EBIT was negative at 720.9 million euros, compared to prior year's negative 77.9 million euros. Adjusted EBIT loss widened to 698.6 million euros from prior year's loss of 146.7 million euros.

In the quarter, revenue was 468.1 million euros, down 87.8 percent from 3.85 billion euros in the previous year. Revenues fell 87.6 percent at constant currency rates.

TUI stated that including the third financial package and the early redemption of the senior bond with a volume of 300 million euros due in October 2021, the company had funds of 2.1 billion euros as of February 3.

In Germany, TUI shares were trading at 3.75 euros, down 0.79 percent. In London, TUI shares were 329.20 pence, down 0.63 percent.

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