TUI cruise brands on slow recovery road

2022-05-14T10:54:14+00:00 May 14th, 2022|Finance|

German-based leisure company TUI, reported that in 2Q22 of its financial year, EBIT loss almost halved to minus €329.9 mill loss, versus 2Q21’s minus €633 mill.

This improvement was driven by a strong operational recovery in the second half of the quarter on easing of Omicron restrictions, with Hotels & Resorts delivering a third sequential positive quarter since the start of the pandemic.

For 1H22, Group revenue was €4.5 bill, an increase of €3.8 bill, compared to the previous year’s €0.7 bill.

The Group’s operating loss (adjusted EBIT) amounted to €603.5 mill in the first half of the financial year, a decrease of €705.3 mill, however, this was more than half, compared to the previous year’s value of a negative €1,308.8 mill.

As for the cruise sector, in 2Q22 EBIT decreased to minus €73.5 mill, compared to minus €55 mill in 2Q21, down 33.8%. However, for 1H22, EBIT was minus €105.3 mill, compared with minus €153.3 mill for 1H21, an improvement of 31.4%.

Since the beginning of April, all 16 ships across TUI’s three cruise brands were back in operation.

Compared to other segments, Cruises recovery is expected to be slower with short-term bookings continue to represent a large share of overall bookings.

TUI said that it saw 2H22 calendar year building steadily. Bookings were trending at higher rates for all three cruise brands, in comparison to previous years.