Tour Operator TUI Reiterates Full Year 2017 Earnings Forecast After Strong Summer Season

TUI Group (TUI.FR), Europe’s largest tour operator, reiterated its earnings forecast for the 2017 fiscal year after a strong summer season with higher demand for its hotels and cruises and despite some disruptions from hurricanes to its business in Florida and the Caribbean.

The company expects its underlying earnings before interest, taxes and amortization, or EBITA, for the current financial year ending September 30 to rise 10% from a year earlier “demonstrating the resilience of our business model and our ability to deal with such external unforeseen events,” the Hannover, Germany-based travel company, said. The company will release detailed earnings for the fiscal year on December 13.

Revenue from the company’s source markets, where it sells its holidays and cruises, rose 8% during the fiscal year, with sales in the Nordic countries jumping 14%, while they rose 6% in Germany and 7% in the Benelux countries. Customer volumes increased from the previous year for most destinations, especially Greece, Bulgaria, Croatia, Italy, Cape Verde and long haul.

“Whilst there are at times external factors which can create uncertainty in specific markets and destinations, we
are confident that our balanced portfolio, content-led growth strategy, and integrated model leave us well positioned to continue to deliver against our plans,” Friedrich Joussen, TUI’s chief executive said.

He said that while booking for future seasons are at an early stage, overall trading for those seasons “remains in line with our expectations.”

TUI said that more than a third of its programs for the winter 2017/2018 season has been sold, with revenues booked to date up 7% and customer volumes up 3%. It added that there is good growth in bookings for Cape Verde, Cyprus, North Africa and Thailand. The company said also that it sees some impact on demand for some parts of the Caribbean and Florida as a result of the recent hurricanes.

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