- TUI expects its strong summer performance to continue into the winter season, allowing it to meet its earnings target for the year.
- The aviation industry has experienced a strong rebound, with 13.7 million bookings for TUI this summer, just 4% short of pre-pandemic levels.
- Bookings for winter 2023 are already up 15% compared to last year, and prices are 4% higher, indicating a strong quarter performance.
The TUI group has released its forecast for the fourth quarter of 2023. The report shows that the company expects its strong summer performance to carry into the winter season, allowing it to meet its earnings target for the year.
TUI and tourism
The TUI group operates five airlines with a combined fleet of 130 aircraft: TUI Airways, TUI Fly, TUI Fly Belgium, TUI Fly Netherlands, and TUI Fly Nordic. The airlines the group operates are centered around medium and long-haul flights.
Photo: Markus Mainka/Shutterstock
In addition to its airlines, the company also has 1,200 travel agencies, more than 400 hotels, 16 cruise liners, and much more. Therefore, the TUI group’s report is a good representation of the current state of the aviation industry.
Summer 2023 performance
Last year, the aviation industry began its strong rebound after the COVID-19 pandemic. The projections for 2023 showed that global travel will eventually reach and perhaps exceed pre-pandemic levels.
The increase in travelers and ticket prices has made the aviation industry more profitable than ever. Over the course of this summer, the TUI has seen 13.7 million bookings, which is 5% more than last season and 4% short of pre-pandemic levels.
The end-of-season numbers are 1.1 million bookings higher than the last update. In comparison to the summer of 2022, the final month of the summer, the group witnessed a significant increase in bookings—nearly 8%. In addition, key markets such as Greece and Turkey have seen a season extension in order to accommodate the extra demand.
Photo: Yves Engels/Ostend-Bruges International Airport
Finally, the Advanced Study Programs (ASP) for this summer is up 27% when compared to pre-pandemic levels, with an increase of 8% versus last season. Higher than the levels expected during the third quarter.
Winter 2023 performance
The impressive increase in travel is expected to continue. Bookings are already up 15% in comparison to last year. Prices are also 4% higher than last season, translating to a strong quarter performance.
In the United Kingdom, 38% of the season has already been sold. Compared to last year, bookings are up 8%, while ASP is up 3%. In addition, expectations for Holiday Experiences trading match up to the forecasted values.
This year’s uptick in travel and bookings has increased the expectations for TUI group’s Earnings Before Interest and Taxes (EBIT) for 2023. Things are looking promising, especially for the airlines that TUI operates, due to the marked increase in travel worldwide.
Photo: Phuong D. Nguyen/Shutterstock
The group’s full results will be released on December 6th, 2023.
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