TUI reports highest revenues

2024-03-01T18:24:31+00:00 March 1st, 2024|Finance|

Large German-based Tour operator TUI’s first quarter 2024 performance delivered the highest ever revenues of €4.3 bill and positive underlying EBIT of €6 mill.

As a result and based on current booking trends, TUI reconfirmed its FY 2024 guidance as increasing its underlying EBIT by at least 25%.

Revenue was up strongly across all segments increasing by 15% against the previous year (1Q23= €3.8 bill). This was driven by higher demand at improved prices and rates.

In Cruises, the strong trading environment coupled with the quality of product offered, drove an increase in occupancy at higher rates, with all three cruise brands contributing to the upside.

TUI reduced its net debt year-on-year by €1.3 bill to €4 bill as at 31th December 2023 from €5.3 bill in 2022.

This improvement was driven by net proceeds (following repayment of the final WSF obligations) from the capital increase in April, 2023 and a positive cash flow from operations and lower net investments.

Bookings were ahead across all markets.

In the cruise division, the three brands are set to operate a full fleet of 16 ships, with ‘Mein Schiff 7’ complimenting the TUI Cruises fleet for the Summer season.

As a result, available passenger cruise days in 2Q24 are in line with 2Q23, whilst the additional ship is the key driver of the 9% increase in capacity for 2H24.

Booked occupancy is up by 5% for 2Q24 and well ahead for 2H24 at plus 13%, generated by a more advanced booking curve than at the same stage last year.

TUI expected occupancy levels to normalise over the financial year to become more in line with pre-pandemic levels. Booked ticket rates in 2Q24 are 18% ahead of 2Q23, where trading was still recovering post-pandemic.

Rates for 2H24 at are slightly lower by 2%, due to the changed brand mix, with TUI Cruises adding a new ship to the fleet in June, 2024.

For the summer season, Mein Schiff, with its fleet of seven ships, will offer itineraries to the Mediterranean, Northern Europe, Baltic Sea and North America, with Hapag-Lloyd’s programme focusing on Europe, North America, Asia, as well as voyages to the Arctic, with five vessels.

Also with a fleet of five vessels, Marella will operate itineraries across the Mediterranean and the Caribbean.