TUI blames hot summer and weak pound as losses double
TUI has blamed last year’s ‘unusually long and hot summer’, overcapacity in the Canaries and the weak pound for its losses doubling in the first quarter.
It saw losses jump from £32.2 million to £75.7 million in the first three months of the year.
The results come after the travel giant downgraded its profit forecast last week, saying it was not now expecting to achieve a 10% rise in earnings but was predicting earnings to remain flat.
Despite the downgrading, chief executive Fritz Joussen insisted the group is ‘financially strong with a sound strategic and operational positioning’.
He said: “The overall trends for our sector are intact. Travel and tourism remain a growth market. Customers continue to travel, but they are currently resistant to increases in price.
“During this consolidation phase in our sector, it is particularly important to adequately participate in market growth. TUI has a good strategic and operational positioning, and the transformation of the Group as a digital platform company is progressing.”