TUI Travel has posted a net loss of €124 million for the first quarter of its financial year, which it blames on weak demand for destinations in North Africa due to the uprisings and political turmoil across the region. The loss for the three months to the end of December is a similar amount to the one posted for the same period in the previous financial year.
Revenues were lifted by improving performances in the Nordic region as well as in the UK, Canada and the Benelux countries. Total revenues grew 5% to reach €3.4 billion. But the travel group’s operating loss expanded to more than €130 million.
Meanwhile, TUI’s chief rival, Thomas Cook Group, today posted a first-quarter loss of €109 million, a substantial widening on the same quarter in the previous year (€44 million), on revenues of €2.23 billion, up 3% on the previous quarter. It is struggling to raise money by selling off assets and cut charter-flight capacity. Other factors weighing down the tour operator business in Europe are the poor economic climate and increasing input costs.
TUI Travel CEO Peter Long told Bloomberg that TUI is “clearly a beneficiary of the uncertain environment our competitor is operating in.”
AFP / Bloomberg