Agency Report –
Hannover – German travel group TUI reported a strong start to its financial year on Tuesday, with net loss narrowing and revenue up by 13%.
“People prioritize their holidays even in times of change and economic risks,” said chief executive Sebastian Ebel in the northern German city of Hanover.
The company’s hotel and cruise businesses recorded strong results, while passenger numbers in the typically weak period of October to December rose by 6% year-on-year to 3.7 million.
Earnings before interest and tax (EBIT) surged from €6 million ($6.2 million) to €51 million, with revenue climbing from €4.3 billion to €4.9 billion.
The average occupancy rate at 85%, while average prices for the winter season were 4% higher than the previous year.
“The first quarter shows that we are on track for further growth in the full year,” said Ebel.
Looking ahead, the company reaffirmed its outlook for the fiscal year, with revenue set to increase from 5% to 10%.
One of the world’s largest travel companies, TUI received massive support from the German government during the coronavirus crisis.
The company is repaying the aid but continues to suffer from a high level of debt.
