BERLIN (Reuters) -Europe’s largest tour operator TUI on Wednesday said it sees good demand for the upcoming summer season despite higher prices after reporting stronger-than-forecast results in the typically weak winter period.
“Travelling is very popular with people. We see trends that will further strengthen this in the future,” CEO Sebastian Ebel said in a statement.
Travel firms are hopeful that 2024’s summer season will surpass pre-pandemic levels, despite economic uncertainty, delays in plane deliveries from manufacturers and rising jet fuel prices.
The German group, which has recently switched its listing from London to Frankfurt, said 60% of the summer programme has been sold so far, in line with the previous year’s level, while prices added 4% on average.
TUI narrowed its operating loss in the January-March period to 189 million euros ($204.52 million), versus LSEG’s consensus of a loss of 246 million euros.
Milder winter weather motivated some travellers to make last-minute bookings in the second quarter, TUI said.
Revenue rose by 16%, hitting a record 3.6 billion euros in the quarter.
Hanover-based TUI, which operates holidays, hotels, cruises and an airline, also confirmed its 2024 guidance of 10% revenue growth and an increase in operating profit of 25%.
($1 = 0.9241 euros)
(Reporting by Andrey Sychev and Ilona Wissenbach, Editing by Rachel More)
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