By Anthony O. Goriainoff
TUI announced that it has returned to profitability for the first time since the beginning of the pandemic, driven by strong customer demand in the third quarter of fiscal 2023.
Earnings Surge: The London-listed German travel operator revealed on Wednesday that its earnings before interest and taxes (EBIT) for the quarter ended June 30 were €175.4 million ($192.2 million). This is a significant turnaround from the EBIT loss of €42.5 million reported in the same period last year. UBS analyst Cristian Nedelcu had predicted EBIT to be around €150 million.
Boost from Underlying EBIT: TUI’s preferred metric, underlying EBIT, also experienced a substantial improvement, reaching €169.4 million compared to a loss of €27 million in the previous year.
Optimistic Outlook: TUI anticipates reporting a noteworthy enhancement in underlying EBIT for fiscal 2023.
Robust Revenue Growth: Revenue rose to €5.29 billion, up from €4.43 billion in the previous year. This exceeded the revenue estimate of €5.01 billion provided by one analyst polled by FactSet.
Strong Summer Bookings: TUI shared positive news about current summer bookings, which showed a 6% year-on-year increase at promising price levels. The company has already sold 86% of its capacity for the summer season, with group-wide bookings reaching 95% of the pre-pandemic summer levels seen in 2019.
