TUI Travel announces further capacity cuts

For the upcoming winter season, TUI Travel has announced that it would make additional, “significant” UK capacity cuts.

Additional charter flight cuts of nine per cent mean that the overall capacity reduction for the winter is 28 per cent as compared with last year.

Capacity for the summer of 2009 is being reduced by 16 per cent, with the operator predicting a “weaker earlier booking environment.”

Average charter holiday prices for the winter are up by 10 per cent due to recent stronger pricing measures. About half of the winter’s charters are sold, with nine per cent fewer programmes on sale.

TUI is seeing weaker demand, however, for skiing holidays, but the adventure and expedition sectors are experiencing positive growth.

As compared with last year, volume for next summer is down by 17 per cent, but prices, on average, are up by 11 per cent.

The load factor is flat, remaining at 18 per cent, but capacity reductions have meant that there is 14 per cent less to sell.

TUI Travel reported that summer 2008 through October had been “in line” with its latest expectations, seeing average charter prices from the UK up by 11 per cent, sales increased by around seven per cent, passenger numbers down by four per cent and capacity having been reduced by six per cent.

“Despite a more challenging trading environment, we are satisfied with our current position across all our source markets and businesses,” the report said.

Thanks to www.travelmole.com for the above quote, for more information on this article please visit their website.

www.tuitravelplc.com