TUI Travel Reduces Operating Losses
TUI Travel PLC have reported improved results with operating loss reduced by £28.4m year on year, to record a loss of £34.9 million in the first quarter ending 31st December 08.
Peter Long, Chief Executive Officer of TUI Travel PLC, said “Our customers continue to seek differentiated experiences with trustworthy brands that provide excellent value for money”.
Strong trading in central Europe, as well as a healthy outlook for both the winter and summer seasons since the last update on February 5th has put bookings in line with capacity reductions and there are additional reports of improved consumer demand in recent weeks.
Peter Long added, “I am pleased with our trading performance across our key source markets and programmes. Pricing is strong as we continue to recover our cost input inflation, while consumer demand continues to improve despite the economic conditions...”
The operator which includes both First Choice Holidays and Thomson Holidays, confirmed that current trading for summer 2009 has inspired confidence that load factor and average sale price targets will be met. Although UK bookings are currently 7% down over the last four weeks, the region has 14% less product to sell versus the same time last year.
Peter Long also echoed recent reports in the travel industry that suggest holidaymakers are keen to avoid the Euro due to an unfavourable exchange rate, whilst also preferring all inclusive holiday options. Looking forward, TUI Travel claim that winter 2008/09 programmes are almost fully sold and in the latest booking period, trading has been strong.
TUI has also upgraded its synergy target by £25m to £200m a year, following improved results.
