Tui forecasts earnings to surge again after record year

Holiday giant Tui has revealed that annual earnings more than doubled after record sales and rising prices and the group expects another 25% leap in operating profits over the year ahead.

It said underlying earnings soared 139% to 977.2 million euros (£836.7 million) in the year to September 30 as revenues hit an all-time high of 20.7 billion euros (£17.7 billion) – “significantly” higher than before the pandemic.

It posted pre-tax earnings of 551.2 million euros (£471.9 million) against losses of 145.9 million euros (£124.9 million) the previous year.

Tui said it expects underlying earnings to jump by at least a quarter over 2023-24, with sales set to increase by another 10% at least.

But in a sign that there will be little respite for travellers from higher holiday prices and air fares in 2024, the group said bookings for the winter season were up 11%, with average prices up 5%.

It added that early indicators so far point to a strong summer season next year, with bookings up 13% and prices 4% higher.

The firm also warned that its guidance for the year ahead comes amid “current macroeconomic and geopolitical uncertainties, particularly in the Middle East”.

It said it has seen a temporary slowdown in bookings to Egypt due to the war between Hamas and Israel.

Rival easyJet said last week that the Gaza conflict and threat to stability across the Middle East had affected bookings across the board in October and November.

Tui chief executive Sebastian Ebel said: “2023 was a good year for Tui.

“We have significantly strengthened our core business and have new growth areas.”

He added: “The current winter bookings and the first indications for next summer lead us to expect a further improvement in 2024.”