TUI Group shares fall sharply as results disappoint | News


Shares in TUI Group fell by more than eight per cent this morning after the company saw profits fall.

The tour operator said underlying EBITDA fell to €294 million in the three months to June 30th, down from €318 million a year ago.

The figure was hit by an earlier Easter and €13 million in disruption costs related to air traffic control strikes in France.

Turnover for the period rose by five per cent to €5.016 billion, up from the previous year figure of €4.775 billion.

TUI Group chief executive, Fritz Joussen, said: “Our sector earns its profits in the fourth quarter.

“We have delivered a profitable operating result already after nine months for the second year in a row.

“For the full year, we expect to deliver double-digit earnings growth for the fourth consecutive time.

“We have considerably reduced our seasonality and thus our susceptibility to external challenges through the group’s transformation focussing on hotels and cruises.

“TUI is in good health, we are flexible, deliver a strong operational performance and invest in our growth segments while maintaining our cost discipline.

“Early bookings and sustained growth at hotels and cruises limit the impact of the prolonged warm weather across Northern Europe.”

Joussen reiterated guidance and said he expected underlying EBITA to grow by at least ten per cent for the full financial year.

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