TUI continues to reduce losses

Tenerife has been a top seller for Thomson
Tenerife has been a top seller for Thomson

TUI Travel has seen its underlying operating loss reduce a further GBP8 million in its first quarter results.

The company has registered a loss of GBP108m for the results ending 31 December 2013 although its numbers during the peak booking period this year have started well.

Strong trading continues in its accommodation wholesaler sector while its specialist and activity brands are also performing well.

Winter bookings for the company ended with 85% sold and higher average prices, with TUI ‘pleased’ with summer 2014 trading so far.

“Our digital transformation continues to gather pace, with a very successful online performance across mainstream throughout the key January booking period. We also continue to see strong growth in our accommodation wholesaler business,” said TUI’s chief executive Peter Long.

“Our strategy is delivering sustainable growth, with a robust business model focused on growing unique holidays and online distribution. Overall, trading remains in line with our expectations and we are confident of delivering 7% to 10% growth in underlying operating profit during the year,” he added.

Its UK performance was in line with the same period last year with 85% of departures in its ‘unique holidays’ sectors up 4% year-on-year.

In comparison the French and Nordics markets are down while Germany’s result was ahead of last year.

The firm is confident of reaching a full-year underlying operating profit growth of 7-10%. TUI is two years into a five-year growth roadmap.

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