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TUI losses double in a heatwave summer

HOLIDAY company Tui has blamed last year’s unusually long, hot summer, along with the weak pound, as its first-quarter losses more than doubled.

The group, which last week sent shares tumbling after warning over full-year profits, reported seasonal underlying losses of €83.6m (£73.3m), for the three months to 31st December, against losses of €36.7m (£32.2m) a year earlier.

The company said results were impacted by last year’s prolonged hot weather across northern Europe, combined with the Brexit-hit pound and over-capacity in western Mediterranean destinations, such as the Canary Islands.

It added that summer 2019 bookings were broadly in line with a year earlier, and that holiday prices had held firm. But it cautioned that its profit margins were taking a hit.

“The market environment for all tour operators remains challenging,” it added.

Shares fell 5%, having dropped in price last week, when Tui warned underlying earnings for the year to 30th September were expected to come in flat at around €1.17bn (£1bn). This compares with previous guidance, for at least 10% growth in earnings.

 

Short URL: http://www.canarianweekly.com/?p=46089

Posted by on Feb 15 2019. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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