TUI Travel and hotels boosts group results
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TUI Travel and TUI Hotels & Resorts were the main drivers behind TUI Group’s increase in its operating result, it has reported.
The group posted a 6% increase in its underlying earnings before taxes for the first nine months of its financial year, posting a loss of EUR252 million (US$336m). This was an improvement on the same period last year, when the figure was at a loss of EUR269m.
Yesterday TUI Travel posted a 18% rise in its underlying operating results for Q2.
Given the positivity the group said it expects “moderate turnover growth” for the year and to increase its operating result to reach EUR1 billion.
Its improvement comes as the Hanover-based group, which has ruled out a merger with TUI Travel, continues with its oneTUI programme to reduce costs. This has included the termination of several sponsorship deals; the sale of the company jet and a new ‘social plan’ with employees. The group is to work more with TUI Travel over its hotel programme and has released a turnaround plan for Hapag-Lloyd.
“The current financial year is a year of transition on our path towards resuming dividend payments,” said TUI AG CEO Friedrich Joussen.
“We are well on track and very confident of achieving the communicated financial targets of oneTUI,” he added.
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