TUI Group says summer trading in line, Turkey demand subdued

BERLIN - Reuters

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TUI Group, Europe’s largest tour operator, said summer trading was in line with expectations, with demand for Spain, Greece and the Caribbean helping to offset subdued bookings for Turkey and North Africa.

Tourists have over the last year been avoiding Turkey, as well as Egypt and Tunisia, over security concerns, instead opting for western Mediterranean destinations such as Spain and Portugal.

For the summer, revenue is 8 percent ahead of last year, while customer numbers are up 4 percent, TUI said on May 15.

The comments came after the group reported a wider second-quarter loss, hit by the late timing of Easter this year, and said it was on track to meet its full-year targets.

“Guidance remains unchanged despite a challenging environment,” Chief Executive Fritz Joussen said in a statement.

The group reported a second-quarter underlying EBITA loss of 177.7 million euros ($194.2 million) at constant currencies, against a loss of 126 million in the year-earlier period.

Adjusted for the late timing of Easter this year, the loss for the first six months of the financial year improved 6.3 percent to 193.3 million euros, TUI said.

It confirmed a target to increase underlying earnings before interest, tax and amortization (EBITA) by at least 10 percent this year.