TUI Group sees profits increase despite terror-driven fall in revenue

(Source: Internet)

TUI Group has seen underlying operating increase by 1.1 per cent, to €180 million, for the April-to June quarter of 2016.

Excluding FX and the timing impact of Easter, EBITA climbed by 14.1 per cent to €203.3 million.

This comes despite a 5.7 per cent fall in revenue, with TUI report turnover totalling €4.6 billion for the period.

This was driven by the timing impact of Easter, a decline in bookings to North Africa and Turkey and the impact of terrorist attacks on the market environment, for instance in Belgium following the terror attack at Brussels Airport.

For the first nine months of the financial year, turnover declined slightly by 0.9 per cent to €11.39 billion.

TUI is currently delivering a robust trading performance in line with the group’s expectations, the company said in a statement earlier.

The summer 2016 source market programme is 87 per cent sold to date, with turnover up one per cent.

“In financial year 2015/16, we are planning to deliver at least ten per cent growth in underlying EBITA year-on-year,” said Fritz Joussen, chief executive TUI Group.

“TUI’s presence in more than 100 countries with our group’s own businesses and employees and our advanced transformation to a hotel and cruises group make TUI Group more flexible and resilient – and thus stronger.

“Today, we are in a better position to cushion geopolitical challenges.

“No one is immune to external impacts.

“However, it has been demonstrated that we have launched the right strategy, engage in active management and control, and have developed a sophisticated risk management system.”