- Q1 2019: Underlying EBITA -83.6 million euros (previous year -36.7 million euros)
- Group turnover grows by 4.4 per cent to 3.70 billion euros
- Customer volumes across all markets climb by 1.2 per cent to 3.7 million
- Sector challenges continue in particular in the traditional tour operating business (Markets & Airlines)
- Holiday Experiences segment with Hotels & Resorts, Cruises and Destination Experiences delivers continued strong operational performance
- Adjusted guidance for full year 2019: TUI expects its underlying earnings to be broadly stable based on constant currency compared with record year 20182
- CEO Fritz Joussen: “Global trends for tourism remain intact. TUI is financially strong with a sound strategic and operational positioning. We are continuing to deliver our transformation as a digital platform company.“
After the record performance delivered in 2018, TUI Group’s start to the new financial year 2019 was in line with its own expectations: turnover growth, volume growth, but lower margins. At -83.6 million euros, the seasonal underlying EBITA loss increased year-on-year in Q1 2019 (previous year -36,7 million euros). The main reasons for the decline in earnings included the unusually long and hot summer in Northern Europe. In addition, strong bookings to Turkey and North Africa caused overcapacity in other destinations such as the Canary Islands, which went hand in hand with lower margins in the tour operating business. At the same time, the British pound remained weak as a result of the Brexit decision. The consistent transformation of TUI launched in 2014 involving a realignment to focus on the Group’s own holiday experiences (Holiday Experiences segment) – the hotel companies, cruise lines, activities and services in the destinations – has proven to be the right approach. These businesses now account for nearly 70 per cent of the Group’s result. The growth strategy for this segment remains intact. Traditional tour operators and airlines tend to be more vulnerable to external factors. “The overall trends for our sector are intact. Travel and tourism remain a growth market. Customers continue to travel, but they are currently resistant to increases in price. During this consolidation phase in our sector, it is particularly important to adequately participate in market growth. TUI has a good strategic and operational positioning, and the transformation of the Group as a digital platform company is progressing. We have paved the way with our investments in hotels and ships, our IT and digital strategy and the acquisition of the Italian digital platform Musement in 2018,” said Fritz Joussen, CEO TUI Group, at the presentation of the Group’s Q1 results on the day of the Annual General Meeting held in Hanover.