TUI AG: Q4 Pre-Close Trading Update
TUI AG (TUI)
19 September 2023 TUI GROUP
Q4 Pre-Close Trading Update
Prior to entering its close period ahead of reporting its full year results for the twelve months ending 30 September 2023 on 6 December, TUI Group publishes the following trading update.
Confirmation of expectations for a strong Summer 2023 with bookings in final month of season well ahead of Summer 2022. We are pleased to see the positive momentum continuing into Winter 2023/24 supported by higher prices. TUI is well positioned to achieve the results target for FY 2023
TUI Group
1 Bookings up to 10 September 2023 and relate to all customers whether risk or non-risk 2 Based on constant currency 3 FY 2019 underlying EBIT of €893m including €293m Boeing MAX cost impact 4 Defined as gross debt (financial liabilities incl. lease liabilities net pension obligations) divided by underlying EBITDA
Chief Executive Officer of TUI Group, Sebastian Ebel, commented: “We are seeing a strong close to the Summer season and we are on course to achieve results in line with expectations. This is particularly evident in our main markets Germany where bookings year-on-year are +10% higher and UK where bookings are in line with an already strong prior year Summer season and +4% ahead of pre-pandemic levels. Indeed, had it not been for the various events during the last few months which were outside of our control, not least the wildfires on Rhodes, we would have performed ahead of expectations. TUI is well positioned as we head into the new financial year. The positive trading momentum is continuing, and I am very optimistic for the coming Winter and Summer seasons. For Winter 2023/24, we are still at an early booking stage, but the increase of +15% in bookings compared to the previous year, is a very encouraging signal. We have a clear strategy for the coming years introducing new products, growing our customer base and developing our market share, supported by the TUI customer ecosystem. We will update the market on our latest strategic initiatives and progress made when we announce our full year results in December.”
Current Trading1 – Markets Airlines We have a strong pipeline of 13.7m bookings for Summer 2023 which is an increase of 1.1m since our Q3 Update on 9 August 2023. As a result bookings for Summer 2023 at +5% are well ahead of Summer 2022 and close to pre-pandemic levels at 96%. The overall Summer 2023 programme is now 95% sold, in line with prior season and pre-pandemic levels. ASP continues to hold up strongly across our markets at +8% versus Summer 2022 and +27% versus Summer 2019, slightly ahead of the levels published at our Q3 Update. In UK cumulative volumes are in line with Summer 2022 and 4% ahead of Summer 2019. In our key Continental European markets, bookings for Germany are up +10% against the prior Summer season and -3% against pre-pandemic levels. Similarly, in the Netherlands, bookings are up +4% against Summer 2022 and -3% against Summer 2019. Our traditional short- and medium-haul offering to Greece, Turkey, the Canaries, and the Balearics, continue to prove popular with our customers, with all key destinations benefiting from higher demand against Summer 2022. We have seen strong demand in the final weeks of the summer season which traditionally runs to the end of October. As a consequence, we recently announced the extension of the season into November in particular to Turkey and Greece, to cover demand outside the traditional Summer season. It again highlights the benefit of our integrated business model and our ability to react quickly to changes in demand.
Current Trading – Holiday Experiences In Hotels Resorts our diversified portfolio of well recognised brands including Riu, Robinson, TUI Blue and
Our Cruises segment is set to operate a full fleet of 16 ships as we head into the Winter 2023/24 season. Mein Schiff, with its fleet of six ships will offer itineraries to the Canaries, the Orient, the Caribbean, Central America, Asia and Northern Europe. Hapag-Lloyd Cruises’ fleet of five ships will focus on routes to the Americas, Caribbean and Asia with standout expeditions including the semi-circumnavigation of Antarctica. Marella, with its fleet of five ships, will operate itineraries to the Canaries and the Caribbean with Asia also reintroduced for the upcoming Winter season. The poorer summer weather in the source markets has boosted bookings and demand in autumn at higher rates. The segment continues its strong post-pandemic recovery. As a consequence, occupancy rates5 are +9%pts higher and average daily rates are up +11% year-on-year and returning to pre-pandemic levels. Q4 available passenger cruise days6 are in line with Q4 2022. The winter programme has been expanded year-on-year with available passenger cruise days up +2% for H1 2023/24. Occupancy rates are +15%pts higher and average daily rates are up +5% for H1 2023/24 against H1 2022/23, underlining the positive start to the winter season. Guest satisfaction is again high across our Cruises brands and exceeding 2019 levels. Recently Mein Schiff was again voted best cruise brand in a survey by the German travel magazines FVW and Travel Talk.
TUI Musement our tours and activities business, continues its expansion with a focus on its B2C offering driving profitable growth of Experiences sales directly to the customer and through B2B, as well as by growing the differentiated own product portfolio globally. Sales to date for our Experiences business, providing excursions, activities and tickets, are +11% higher for Q4 against Q4 2022. The transfer business, providing support to our guests in their destination, is expected to develop in line with our Markets Airlines capacity assumptions. The winter season has started positively but is still at a very early stage.
1 Bookings up to 10 September 2023 and relate to all customers whether risk or non-risk 2 2023 trading data as of 10 September 2023 excluding Blue Diamond 3 Number of hotel days open multiplied by beds available in the hotel (Group owned and leased hotels) 4 Occupied beds divided by available beds (Group owned and lease hotels) 5 Achieved passenger cruise days divided by available passenger cruise days 6 Number of operating days multiplied by berths available on the operated ships
Analyst Investor Enquiries
Cautionary statement regarding forward-looking statements The present announcement contains various statements relating to TUI Group's and TUI AG's future development. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, they are not guarantees of future performance since our assumptions involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors include market fluctuations, the development of world market prices for commodities and exchange rates or fundamental changes in the economic or political environment. TUI does not intend to and does not undertake any obligation to update any forward-looking statements in order to reflect events or developments after the date of this announcement.
Appendix:
Markets Airlines Trading
1 Bookings up to 10 September 2023 relate to all customers whether risk or non-risk
Holiday Experiences
1 Trading data as of 10 September 2023 2 2023 trading data as of 10 September 2023 excluding Blue Diamond 3 Number of hotel days open multiplied by beds available in the hotel (Group owned and leased hotels) 4 Occupied beds divided by available beds (Group owned and lease hotels) 5 Number of operating days multiplied by berths available on the operated ships 6 Achieved passenger cruise days divided by available passenger cruise days
Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
ISIN: | DE000TUAG505 |
Category Code: | TST |
TIDM: | |
LEI Code: | 529900SL2WSPV293B552 |
OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
Sequence No.: | 272206 |
EQS News ID: | 1728745 |
End of Announcement | EQS News Service |
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