Travel Giant TUI Returns to Summer Profit as Demand Surges

TUI AG said it expected its summer 2023 travel season to be close to pre-pandemic levels after reporting earnings that beat estimates.

(Bloomberg) — TUI AG said it expected its summer 2023 travel season to be close to pre-pandemic levels after reporting earnings that beat estimates.

The world’s biggest tour operator said underlying earnings before interest and tax rose to €169 million ($185 million) in the quarter ended June 30, its first profitable early summer quarter since the pandemic and beating analyst forecasts for a €145 million result.

TUI stuck to guidance for underlying earnings before interest and tax to be higher than the €409 million it reported for the year ended Sept. 30 when the removal of Covid-related curbs paved the way for a bumper travel season across Europe. Average holiday prices are 7% higher than last year.

TUI said its summer bookings were at 95% of pre-pandemic levels, in line with previous guidance. The tour operator expects the costs of recent wildfires on the Greek island of Rhodes to be around €25 million, including compensation and repatriation flights.

European travel firms are reporting strong financial results despite inflation and high energy costs damping consumer spending. Deutsche Lufthansa AG last week said its second quarter earnings tripled as soaring demand for travel boosted ticket prices.

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