TUI Group revenue for Q1 2024 was up 15% to 4.3bn euros ($4.63bn), with the group delivering a positive EBIT in the quarter for the first time since the merger of TUI AG and TUI Travel plc.
Almost all segments contributed to the earnings improvement, confirmed TUI, with strategic full-year growth forecasts for 2024 set at a further 10% increase in revenue and 25% in operating revenue. TUI CEO Sebastian Ebel described the growth as “on track,” adding that “in a persistently challenging environment, people’s high willingness to travel ensures strong economic development in all areas of the Group”.
Within the markets and airlines segment, the first quarter’s seasonal loss of -95.7 million euros ($103 million) was half of the previous year’s figure: driven by higher average prices, an improved operating performance and a return to normal hedging lines. The northern region (comprising UK, Ireland and Nordic countries) also improved its underlying earnings ‘significantly’, from -122 million euros ($131 million) to -50.4 million euros ($54 million). Although the underlying EBIT for the western region (France, Belgium and the Netherlands) was 6.6% lower than in the previous year, TUI attributes this to ‘one-off effects’.
TUI shareholders are also to decide whether the group’s listing on the London Stock Exchange (LSE) should be discontinued, with investors having previously suggested TUI relinquish its current dual listing. With most of the liquidity of the TUI share having shifted to Germany in recent years, inclusion on Frankfurt’s MDAX would offer ‘understandable advantages for investors and the company’ notes TUI. In support of investors’ suggestions, TUI’s executive and supervisory boards have recommended that shareholders approve the proposed resolution, which will require a 75% majority.
TUI Group starts 2024 with strong operating performance, seeks LSE delisting
