TUI Group’s first quarter 2025, ending December 2024, reported underlying earnings before interest and taxes (EBIT) of €51 million, up from €6 million a year prior.
The group’s cost of sales was up 12.3% to €4.6bn. Gross profit was up 33.1% to €261.1 million. The company’s net loss totalled €30.4 million, improving from €83.5 million a year prior.
The result was driven by its hotel & resorts and cruises segment, up 65.8% to €150.3 million and up 39.6% to €48.2 million, respectively. In addition, its activities and tours division TUI Musement’s losses improved to €2.3 million, compared to an underlying EBIT of €10.7 million a year prior.
However, the company’s markets & airline segment was down 31.1%, widening its losses further to €125.2 million. This was driven by higher investments ahead of the peak summer period and higher costs, offset by continued higher demand for “dynamic packages in a highly competitive environment”. The EBIT loss was aligned with the company’s expectations.
The group’s revenues were up 13.2% to €4.9bn. Markets & airline segment was up 13.2% to €4.2bn. Hotel & resorts were up 15.5% to €290.8 million; cruises up 5.4% to €175.9 million; and TUI Musement up 18.6% to €231.1 million.
“The first quarter shows that we are on track for further growth in the full year,” said TUI CEO Sebastian Ebel. “Our hotel and cruise businesses are growing continuously and are highly profitable. With the initiated transformation, we are strengthening the tour operator business in the core European markets. To become less dependent on Europe, we are focussing on new growth markets in Southeast Europe, Asia and Latin America.”
Ebel added: “The first quarter shows: our strategy is paying off, operationally we are delivering. People prioritise their holidays even in times of change, and even in a challenging economic environment in Europe for almost all sectors.”
The company noted airline bookings were up only 2% compared to last year. Ebel said in an earnings call that bookings had been slower. The company’s shares were down over 10% following the report. Bookings are expected to grow at a high single-digit rate for the second quarter and a low double-digit rate for the second half. The company added it would aim to fill its current capacity before chasing any substantial capacity expansion.
TUI reaffirmed its full year revenue guidance, expecting growth of 5-10%, compared to FY24 revenues of €23.2bn and underlying EBIT to increase 7-10% compared to €1.3bn.
Markets & airlines is expected to have “moderate growth” for the full year period, supported by its dynamic packaging and component sales. In addition, the higher average sales price is helping to mitigate the higher cost environment, which includes costs for sustainable fuels and the EU emissions trading scheme (ETS).
Hotels & resorts and cruises are expected to have slight growth in the full year, while its TUI Musement is expected to see strong growth.
As of the end of 2024, the company’s total equity, liabilities and provisions were €16.8bn and total assets were €16.8bn.