Annual General Meeting in Hanover: Higher losses for Tui in winter
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Hannover (dpa) - Unexpectedly strong bookings for holiday destinations Turkey and North Africa weighed on earnings at the world's largest travel group Tui at the beginning of winter.
As a result of the absence of beds in the Canary Islands, Tui had to cope with a higher loss in the first quarter of the financial year until the end of December than the year before, as the company announced before its Annual General Meeting in Hanover.
The long summer in Northern Europe and the weakness of the British pound also slowed demand. Tui boss Fritz Joussen had therefore already cut his profit target last week.
In the first quarter of the financial year until the end of December, Tui increased its revenue by a good four percent to 3.7 billion euros. The typical quarterly loss for the quarter increased by almost 28 percent to 139 million euros, while the operating loss (adjusted Ebita) at 84 million euros was more than twice as high as a year earlier.
For the current fiscal year to the end of September, Joussen now expects only an operating result at about the previous year - and thus at just under 1.2 billion euros. Tour operators usually write red numbers in winter. Their profits are earned during the peak season in summer.