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[1/2] A Boeing 787 aircraft of travel company Tuai takes off from the southern runway at Gatwick Airport in Crawley, Britain, on August 25, 2021. REUTERS/Peter Nicholls
LONDON, May 9 (Reuters) – Travel company TUI ( TUI1n.DE ) said it expects strong revenue and higher profits for the full year 2023 on the back of strong bookings for the busy summer travel season.
Airlines such as Lufthansa ( LHAG.DE ), EasyJet ( EZJ.L ) and Ryanair ( RYA.I ) all reported strong summer bookings, showing consumers are prioritizing travel spending amid high inflation and an uncertain economic outlook.
Bookings for winter jumped 13% compared to the same period last year and reached 96% bookings for winter 2019, the last summer before the Covid-19 restrictions came into effect. Average prices for summer trips are up 5% from last year.
In the January-March reporting period, the number of customers traveling with TUI increased to 2.4 million.
“Strong booking development and significantly improved quarterly figures highlight our expectations: a strong summer and a good financial year 2023 with significantly higher operating results,” CEO Sebastian Ebel in a statement.
The company fully repaid its state bailout earlier this year and reported a quarterly loss before interest and tax (EBT) of 242 million euros ($266.39 million), down 88 million from last year.
With fewer people traveling in the first three months of the year, TUI’s second financial quarter results are expected to be generally weak.
($1 = 0.9084 EUR)
Reporting by Joanna Plusinska, Editing by Louise Havens
Our Standards: The Thomson Reuters Trust Principles.
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